handling texas sales and use tax audits and...
TRANSCRIPT
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Handling Texas Sales And Use Tax Audits And Appeals
Dallas CPA Society Convergence 2013
Presented By:
Stephen Hanebutt, CPA Sales Tax Specialists of Texas
Tona Luna Manager, Audit Division
Comptroller of Public Accounts
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Handling Texas Sales And Use Tax Audits And Appeals
Prior to fieldwork beginning
Complete the audit questionnaireProvide Power of Attorney ( POA)Discuss the use of Electronic Records
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Handling Texas Sales And Use Tax Audits And Appeals
Prior to fieldwork beginning
Determine if Taxpayer wants and is eligible for a Managed Audit
Taxpayer must have an audit history
Must be requested within 30 days
Prior audit must have taken the auditor at least 80 hours to complete 4
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Handling Texas Sales And Use Tax Audits And Appeals
Prior to fieldwork beginning
Provide documents requested by auditorFederal tax returnsSales tax payable account detailBank statementsDepreciation schedulesChart of accountsResale/exemption certificates
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Handling Texas Sales And Use Tax Audits And Appeals
Prior to fieldwork beginning
Control what the auditor sees
Determine where the bulk of the fieldwork will take place
Taxpayer’s siteCPA’s officeAuditor’s office
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Handling Texas Sales And Use Tax Audits And Appeals
Prior to fieldwork beginning
Get resale/exemption certificates in order!!!Elements required for exemption certificates
Name and address of the purchaserName and address of the sellerDate and signature of the purchaserA description of the item to be purchasedThe reason the purchase is exempt from tax (exemption only)Sales tax permit number for purchaser (resale only)
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Handling Texas Sales And Use Tax Audits And Appeals
Prior to fieldwork beginning
Timeline
Prior to entrance conference
From entrance conference through 60-day period after notification granting Redetermination Hearing
After 60-day period10
Entrance Conference
Exit Conference
Notificationof AuditResults
Redetermination Hearing Request
(SOG)60-DayLetter 61st DayPrior to
EntranceConference
1stPeriod 2nd
Period 3rdPeriod
Timeline For Certificates
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Handling Texas Sales And Use Tax Audits And Appeals
During the Audit
Document communications with the auditor –email
Tick and Tie – review the auditor’s work
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Handling Texas Sales And Use Tax Audits And Appeals
During the Audit
Treat the auditor with respect in a non-confrontational mannerWaiver of statute – request interest waiverResearch sources
STAR http://cpastar2.cpa.state.tx.us/tri_open.html
Tax help http://www.window.state.tx.us/
Audit manuals and other Audit Related Information http://www.window.state.tx.us/taxes/audit.html
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Handling Texas Sales And Use Tax Audits And Appeals
Post-fieldwork
Talk to the auditor’s manager/supervisor (Reconciliation Conference
IARC (Independent Audit Review Conference) –schedule prior to Exit Conference
Exit Conference18
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Handling Texas Sales And Use Tax Audits And Appeals
Post-fieldwork
Settlement DiscussionsField Manager is involvedOpportunity to decrease liability prior to Redetermination HearingLimited to issues involving Penalty and Interest
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Handling Texas Sales And Use Tax Audits And Appeals
Post-fieldwork
Notification of Audit Results letter will be sent
30 days to respondRequest Redetermination HearingProvide Statement of Grounds
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Handling Texas Sales And Use Tax Audits And Appeals
Post-fieldwork
Redetermination Hearing
District Court
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Handling Texas Sales And Use Tax Audits And Appeals
Questions?