sales tax audit

[ACS]

Texas

I have just been notified that the comptrollors office will be conducting a routine audit on my company.

Has anyone expereinced a sales tax audit and what was it like?

Any imput would be apperciated.

thank you,
ACS

 

[ACS]

I guess that no one has had experence with a tax audit, so anyone has any imput with any sales tax exper?

thanks
ACS

 

[JETX]

Presuming you have nothing to hide, answer their questions honestly and provide any documents that they request.
Is there a problem with that???

 

[ACS]

No, nothing I couldn't afford to pay if proven.

I always try to prepare myself before I go into a situation by learning about that subject. I trust no one and that includes the government. Going into this sales audit with a little knowledge surely will be in my favor.

And I can't help but worry, that’s my job. and

Thank you to our senior board members for helping all of us, Small Business Owners, with our questions.

 

[abezon]

In general, the auditor will be looking at 3 things.

1. How much *gross* income you made & what kind it was. Possible problems would be reporting only your net income (the "profits" from Schedule C/corporate return) & misclassifying income. For example, filling out the form for 'services' when you should have been using the retail sales line will mean you didn't pay sales tax on all the 'services' income. Also, different kinds of services may have different business & operations tax rates, which is separate from sales taxes.

2. Deductions. You do not get to deduct expenses before figuring the sales tax you owe. Most states allow you to deduct from gross sales the sale of items you bought at retail & paid sales tax on when you bought them. If you run a coffee stand & occasionally have to buy supplies in the middle of the day, you might have to pay sales tax if you didn't bring your tax exempt card. You get to deduct the cost of the items from gross revenue so you aren't paying sales tax twice on the same item.

3. Use tax. If you buy something for your own use from out of state (mail order), you are still required to pay your state's sales tax on the item. This includes non-business purchases.

 

[ACS]

thank YOU so much, very helpful. How long does an audit last?
We are a small company, about a mill a year.
Is it just one person or a few?

 

[I AM ALWAYS LIABLE]

I trust no one and that includes the government.

========================================


My response:

There, you see? That's a PERFECT example of what Watergate and that son-of-a-bitch, Richard M. Nixon, did to this country. We lost our innocence, and our "virginity" as it were, all because of that PIG'S criminality!

It's in our core - - an arrow through the heart of this country. That [email protected] had no clue of the long-term effects his actions would have on us - - and even to today, it permeates our souls.

I hate that man! I hope he rots in hell!

IAAL

 

[ACS]

wow!!

 

[I AM ALWAYS LIABLE]

wow!!

My response:

"Wow" is right!

I'll bet you didn't even know the genesis of your statement and feelings about our government. Your statement speaks volumes of what Nixon did to us as a country.

You knew you couldn't trust our government, and I can't say that I blame you. But, that's the reason. Those feelings are now being passed down to the next generation of citizens who would have otherwise believed that our government would protect us, be trustworthy, and keep us secure without having to "think twice" about it. Today, however, and because of that son-of-a-bitch, we not only have to fight our own personal problems, but we also have to keep one eye on our government - - which we shouldn't have had to do.

Our trust was the armor, and now, because of Nixon, the armor has holes in it. It's a sorry state of affairs that you felt you had to say what you said, and to actually believe it. But, it's a truism.

That's the legacy that Richard Milhouse Nixon left to us.

IAAL

 

[ACS]

Clinton?

 

[I AM ALWAYS LIABLE]

Clinton?

My response:

Nowhere NEAR as bad. Clinton was just being charged with perjury. Clinton didn't almost cause a Constitutional meltdown, like Nixon. Clinton's fiasco was more on the level of a pimple on your butt by comparison to what Nixon did, and later caused with the U.S. Supreme Court. PLUS, beside the Watergate break in, and the tapes, and the scandal, Nixon ran in 1968 on the promise to get us out of Viet Nam. It wasn't until late 1973, some 5 years later BEFORE he finally ordered the troops out! However, on his "watch" alone, over 25,000 boys lost there lives. No other President, not even Johnson, killed as many boys on his "watch".

Read your history. You'll agree. There's no comparison between the Clinton and Nixon. Nixon makes Clinton look like the chubby Boy Scout that he was.

Hell, for that matter, Nixon made the "Teapot Dome" scandal look like a tea party!

IAAL