Stephens|Dixon Recovery Services, LLC

When You Need Us

Stephens | Dixon is here when you need us

Stephens|Dixon Recovery Services are consultants focused on a single objective. Our business is to improve your profitability. We approach every client with the understanding that we are contacted to provide concrete solutions to Sales and Use Tax issues.

The Office of the Comptroller for the State of Texas has nearly 700 audit personnel, twenty two audit offices and an objective to assess additional revenue through audit and voluntary compliance.

Stephens|Dixon is there to insure that you are on a level playing field with the state during an audit.

We urge you to Contact Us:

If you suspect you are overpaying sales taxes on purchases associated to manufacturing anything from packaging to power.
You have been notified of a Sales and Use tax audit with your state's taxing authority.
You need audit preparation prior to an audit or require a competent third party to work with your auditor.
Your business has locations in multiple states.
You are having difficulty remitting tax across multiple taxing jurisdictions.
You are an owner or new CFO, Controller or Tax Director and want to identify any irregularities that could result in exposure or lost profit.
You have an existing business that is expanding.
You want to provide additional support to your Accounts Payment area.
You have any questions about exemptions that are available to you.

What do I do when I have a Sales & Use Tax audit?

The purpose of a State Sales and Use Tax Audit is to determine if your business follows all sales and use tax laws that govern your business.

If you are selected for an audit you need to be prepared.

When you receive your notice of audit
  • Don't panic.
  • Prepare and return the Audit Questionnaire in a timely manner.
  • Ideally, you would have someone conduct a 'pre-audit' of the information to identify issues in advance of the auditor arriving.
Work with the Auditor
  • Arrange an opening conference with the auditor: make sure they understand the business, the type of products and services provided.
  • Bluntly, the auditor is not your friend!
  • The auditor works for the State and the auditor's job is to assess your business to determine if the business is paying the correct tax and purchases additionally collecting and remitting tax on the taxable sales.
During the Audit
  • You want the auditor to have a good understanding of your business. This can prevent questions and wasted time on the part of the auditor.
  • Designate a go to person as the auditor' single point of contact during the audit.
  • Take time to understand how the business records will be reviewed. The auditor may review the records 100% or use a sampling method.
  • Always keep in touch with the auditor to monitor the audit's progress.
Audit Completion
  • After the auditor has performed the audit, the auditor will discuss and review the audit results with the taxpayer. Not all taxpayers agree with the auditor's findings, and most states have procedures in place to appeal audit results. It is advisable to retain a sales tax professional to aid in determining what avenues of appeal are available to the taxpayer.
  • It is your responsibility to know the law of your state with regard to post-audit measures regarding your outcome.
Conclusion
  • If your business is ever selected for an audit, you need to be ready.
  • Once you've been notified, the opportunity to make changes has passed and you will be judged on your activities as portrayed by your business records.
  • Stephens|Dixon is there to insure that you are on a level playing field with the state during an audit.