SALES TAX AUDITS

It is easy for a business to err with regard to sales tax compliance. And, regrettably, when that happens, the repercussions are possibly the harshest of any tax. Let our attorneys investigate the specifics of your case and develop a tax action plan that will protect your business.

GET TAX HELP

SALES TAX AUDIT HELP FOR BUSINESSES

SALES TAX AUDITS AND COMPLIANCE

When you get a letter of a pending audit, our attorneys can protect your rights throughout the investigation process. We also help ensure you observe all sales tax laws, thus avoiding audits and penalties in the future.

ASSESSMENT APPEALS

If you want to dispute the state auditor's findings, we can challenge and protest the assessment on your behalf.

SALES TAX LITIGATION

If you want to file a lawsuit against the State taxing agency, our attorneys can litigate your case and help attain the best possible settlement even without a final court verdict.

Dealing with the California Department of Tax and Fee Administration (CDTFA) can be frustrating, expensive, and disruptive to your business, especially if you attempt to handle the sales tax audit on your own. Unfortunately, the CDTFA auditor's job is to hunt for additional tax revenue for the State. They have multiple tricks up their sleeves to collect as much revenue from your business as possible.

Sometimes, they even rely on statistical sampling and other methods to determine your amount of liability. Yes, California auditors can assess you a liability based on nothing more than guesswork. 

The fundamental problem in a California sales tax audit is that the sales of a business over the standard three-year audit period are often too many transactions for one person to reasonably verify.

But worry not, with an experienced sales tax audit attorney on your side, you can safeguard your business and your rightfully earned assets.

Facing a sales tax audit? Don't go it alone! The state auditors are trained to unearth any tax errors and make you pay dearly for them. Thus, you need an attorney who is well-versed in sales tax law to outmaneuver them and reduce your tax liability.

There is no straightforward answer to this question. But, several factors can raise your risk of a CDTFA sales tax audit.

  • Failure to report sales tax
  • Your vendor or supplier getting audited
  • Constant late filing of taxes
  • Presence of past tax issues
  • Claiming hefty exemptions in your taxes
  • Noncompliance is prevalent in your industry (for instance, the liquor stores and cannabis industry may underreport cash transactions, hence triggering an audit).

 

California sales tax audits are not random. Auditors go after certain types of businesses and industries that are viewed as low hanging fruit and isolate issues specific to those industries.

When the audit concludes that your business has not been paying the required sales taxes, you might be subject to significant penalties and interests, as outlined by state policy. You may even face criminal charges.

As you can see, the stakes are very high, and you cannot afford to fail a CDTFA audit. You need a tax team that understands the ins and outs of how sales tax audits work in order to maximize your success and minimize your risk during the process. Our experienced attorneys at Brotman Law will work with you to advise you through the sales tax audit process, interact professionally with the auditors, and negotiate a favorable outcome on your behalf.

 

Very few attorneys practice sales and use tax law because it is incredibly complex and they lack the requisite background in statistics. You have come to the right place for smart and strategic solutions. Let our legal team dig into the particulars of your situation and work to build a tax action plan that will protect your business.
GET TAX HELP

DO I NEED A SALES TAX ATTORNEY?

Don't be intimidated into paying more than you should. We can help:

KNOWLEDGE OF SALES TAX LAW

Our attorneys have a thorough understanding of sales tax law and CDTFA procedures. They understand the many nuances of the law and are able to decipher complex sales tax information with a clear eye.

A DILIGENT ADVOCATE

Our attorneys are always and without exception on your side. They will negotiate for you in board appearances and meetings, help towards a settlement, and represent you in court, if needed.

CONFIDENTIALITY

Unlike discussions with your accountant, everything you discuss with us is protected by attorney/client privilege. Thus, you can be frank in our meetings, allowing us to advise you better.

YOUR SALES TAX AUDIT ACTION PLAN: STEP-BY-STEP

01

THE INITIAL DIAGNOSTIC

Your first step in the process is to meet with our concierge team. They will collect some basic information that our senior legal team will use to sketch the four corners of your tax action plan. This initial meeting is completely complimentary. It is our job to analyze your situation and determine whether you are a good candidate to take the next step in our process.

After your initial diagnostic, our team will make an initial recommendation and connect you with our senior legal team or another resource to assist you.

02

MEET WITH OUR SENIOR LEGAL TEAM

Let's get down to brass tacks. We usually begin our meeting by going through the basics: who you are, what you have been doing, and, based on this, what your risk exposure is in a sales tax audit.

As we listen to your answers, we are stress-testing your business to see where the weak spots would be in an audit. If you have submitted any documents to us, we will review them before the meeting and provide feedback based on what we see. However, providing financial documents (tax returns, sales summaries) is unnecessary at this point.

We are happy to answer any questions that you may have about the sales tax audit process or your individual risk. By the end of the meeting, we will outline a comprehensive plan for your sales tax audit defense and share our recommendations.

03

OUR PLAN DELIVERED TO YOU

After you sit down with Sam or our senior legal team, we will work to finalize your plan in writing and deliver it to you. There is no further obligation to us at this point, and your action plan comes with a full 100% money-back guarantee. If we do not deliver value for you, you do not pay for your plan: plain and simple.

Remember that our plan comes before we have an opportunity to do more than an initial examination of any supporting documentation. However, while not a substitute for full legal representation, we have designed the plan as its own stand-alone component.

We help you define the rules of engagement and set the tone for the audit. Often, even with a base familiarity with the client's data, we can steer the direction of the audit early to our client's benefit. By having a plan, even without full representation, you will see a significant impact at the start of the audit, which will be critical in determining the outcome and maximizing your defense.

04

EXECUTION

Here's where the rubber meets the road. With your approval, we can execute and begin implementing your customized plan by the end of your first meeting. In reality, by the end of having us deliver their plan, most clients will elect to retain us for some measure of services going forward toward implementation.

We like to say in the firm that we are not in the habit of making decisions for people, but rather, we strive to provide enough information for organizations and business owners/officers to make their own decisions. That is not to say that we leave you to do the heavy lifting (quite the contrary, our recommendations are usually precise and candid), but the control over the matter should always rest with the client. We strive to keep you in the loop and break things down step-by-step.

GET TAX HELP

BOOK A FREE ASSESSMENT CALL

Set up a quick call with our firm's concierge to see if we'll be able to help you. The whole process will take 10 minutes or less. If your matter is urgent we will also help to expedite a meeting with Sam.

NEXT STEPS


Next, you will meet with the Firm Owner and Director of Legal, Sam Brotman for your consultation. Any information that you can provide or any documents you would like Sam to review are always helpful, so we can ensure that you get as much value as possible.

WE HAVE HELPED THOUSANDS OF PEOPLE JUST LIKE YOU SAVE OVER $1 BILLION IN TAXES.

STILL HAVE QUESTIONS?

Tax law can be complex, confusing, frustrating, and even scary. We're here to help!

When is sales tax due?


Depending on the State, most sales tax bills are due quarterly or monthly. Make sure you confirm the filing dates of where you reside.

How long does a standard sales tax audit last?


Typically, it might take 1-6 months to conduct. However, the duration also depends on several factors, including the size of the business, activity in the local jurisdiction, audit schedules, the complexity of issues and data involved, etc.

What steps should I take if I am identified for a sales tax audit?


You should seek the help of a sales tax attorney. The value sales tax attorneys can offer is twofold. First, they help you make sense of the audit process and everything that's expected of you. Second, they defend you against any claims of noncompliance with sales tax.

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