What Do I Do If There Is a Really Serious Error on My Tax Returns and I Get Audited?

What Do I Do if There's a Really Serious Error of My Tax Returns? and I get audited? unlike other forms of audits serious errors and sales tax audits are usually pretty easily discoverable one of the biggest mistakes that people make is they under report their sales tax returns but their federal income tax returns show the true amount of sales. The auditors take what I call big five data here sales tax returns your federal income tax returns your internal accounting your bank statements and your 1099 KS and they line up all that data together that's a pretty good indicator out the gate of whether or not there's a discrepancy or whether or not your reported taxable sales or accurate so anyway this is a big problem because it's very easy to see serious errors out of the gate so the first thing you need to do is understand how serious.

The error is and understand whether or not there was any intent behind it so if there was intent and potentially you fraudulently filed the sales tax return that's a different issue if there's a serious error and it's isolated in one particular quarter you're better off highlighting it for the Auditor and isolating the error rather than letting them turn a molehill into a mountain and go through the entire audit with the expectation that that error is going to continue so the best thing that you can do with errors is either a admit them to the auditor flat-out or be do damage control and mitigate the issue as much as possible by mitigating the issue you're going to reduce your liability and you're going to shorten the life of the sales tax on it and the author and the error is not going to seem that serious winning question you.


Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law