Growth of State Tax Audits

The SALT Shaker

During 2011, a growing number of businesses were subjected to state tax audits. The state governments are starved for revenue and they realize the business community is a fertile source for unreported tax revenue, particularly sales/use tax.  Our experience representing clients in audits has shown that many businesses have misconceptions regarding the sales tax.  Consider the following questions with regard to your business:

  • Does your business have a Maryland sales/use tax account? (If not, you are more likely to be audited by the state)
  • Have you paid sales/use tax on all of your purchases of tangible property?
  • Do you buy property over the Internet from out-of-state vendors?
  • Do you either charge sales tax on all of your customer sales or collect an exemption certificate?
  • Is your business ready for a Maryland sales tax audit?

The answers to these questions are crucial when the state of Maryland selects your business for audit.  The SALT Group at KatzAbosch is experienced at helping businesses ensure their readiness for state auditors.  We can review your records looking for compliance with state regulations and search for potential refund opportunities. Based on our recommendations, businesses are able to significantly reduce their exposure to audit assessments.

Please contact the KatzAbosch SALT Group if you want to reduce potential audit assessments.

The SALT Shaker is prepared by Andy Bareham, Chair of the KatzAbosch SALT Group

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