So what to do after you recover from the shock of seeing the CT DRS Sales Tax auditor's findings?
Shake it off and call a tax professional. Our office handles CT DRS sales tax audit issues all the time, and it is an area we can help you with.
Whether in Hartford, CT or elsewhere, the CT DRS Sales Tax auditors can be aggressive, and often there are a number of issues that may be appealed in your sales tax protest. These include:
- The mark-up of taxable items
- The percentage of items sold subject to the sales tax
- Wether the test period used was truly representative of the whole audit period
- Issues with the records maintained by the business
The other impact of protesting the CT sales tax audit is that you have a chance to reduce the audit period. The CT sales tax auditor, if they find an understatement of more than 25% will deem the business owner guilty of fraud, hit them with a 25% fraud penalty, and open up the audit to all years that owner had the business. This often will increase the audit liability exponentially. By fighting the items stated above the business owner and their representative may be able to reduce the understatement to below 25%, and keep the audit to the original 3 year period planned.
Another reason to always protest the sales tax audit findings is that it keeps the issues on the table if you decide to file an offer of compromise with the CT DRS, and will prevent the auditors from referring the case to the criminal investigators.
If you should have any questions or concerns about a CT DRS sales tax audit in Hartford, CT, or how to protest the CT sales tax auditor's findings, I would be happy to help. Please feel free to contact me anytime at (860) 657-9040 or e-mail me at firstname.lastname@example.org.
Eric L. Green, Esq.
Convicer & Percy LLP
Phone: (860) 657-9040