Audit Management & Defense
DMA’s Sales/Use & Commodity Tax Audit Management & Defense service focuses on your specific needs related to current, upcoming or past sales/use or commodity tax audits. We can manage the entire audit process on your behalf or review audit work papers at any time during the audit process and prior to the statute of limitations expiring. We can also partner with you to perform a managed audit. Most important, you can be assured that you will pay only the minimum tax due.
Our comprehensive audit management service provides you with an experienced tax professional who will become an extension of your tax department. This professional will manage every step of the audit including:
- Meeting with the auditor and devising an equitable audit plan,
- Retrieving invoices and organizing items based on available exemptions,
- Reviewing all audit work papers in detail, including the audit methodology and sampling procedures,
- Identifying overpayments to incorporate into the audit work papers,
- Determining if proposed penalty and interest assessments can be waived,
- Documenting and presenting all findings to you and the auditor, and
- Pursuing unresolved issues through the appropriate channels, with your approval.
DMA can also be a “second pair of eyes” by reviewing the audit work papers at any time during the audit process or after the audit has concluded, as long as the statute of limitations remains open. You can be assured that we will examine the work papers in detail, including all transactions for proposed assessment, all issues raised, exemptions available, audit and sampling methodology, and the waiver of any proposed penalty and interest.
We focus on helping you reduce proposed sales/use and commodity tax audit assessments. And, we will provide you with recommendations to eliminate prospective tax errors in the future.
DMA’s Sales/Use Tax Managed Audit service provides you with state-specific tax resources that become an extension of your tax department to perform a managed audit. A “managed audit” is a self-audit performed by a taxpayer according to parameters established by a state. DMA’s focus is to ensure the final audit assessment is fair and not skewed in the state’s favor.
Generally, managed audits give you more control over the audit. DMA’s audit findings are substantiated from the beginning, thereby reducing burdensome negotiations, which also shortens the duration of the audit. In addition, the state will perceive that you are proactively managing your tax payments, thus eliminating potential adversarial state/taxpayer relationships. And, DMA ensures that all items with tax paid are considered versus a state auditor simply focusing on items where tax was not paid.
Not only will we perform the audit as your representative, we will provide you with a final report addressing the audit process and findings. We will minimize your current sales/use tax liability, and we will recommend solutions to eliminate future mistakes.