Completing a Sales Tax Audit is a big thing in itself. It was probably one of the hardest things you have cracked in your life. It could be challenging but now it’s over. Now you can take some of your time and think about what you are going to do now. Things can be harder in the start but when everything is in its place then it’s not more complicated for the next time. At least you can try to avoid the same mistake the next time and you can make things easier for you for the upcoming times of sales tax audit.
Now the question that arises is “What to do now?”. Now that the audit is complete what should you do? You can make a plan and start following these 10 steps after conducting a sales tax audit to make things easier for you in the future.

Steps to take after Sales Tax Audit

1. Take a look at the Audit Report

The report of the audit is the first item that you should request and demand. This tax audit report will tell you more about your sales tax audit. You can get to know about the problems and inconsistencies or problems that appeared at the time of the sales tax audit. Asking questions from your sales tax advisors for clarity is important.

2. Comprehend the Results

After reading the audit report, it is crucial to understand its results. Were there any inconsistencies or mistakes that needed fixing? What, if any, problems did the auditor identify with your documentation or compliance procedures? It is crucial to understand the findings in order to make strategic decisions.

3. Calculate Any Extra Fees or Taxes

Additional tax liability or fines could be the result of an audit. You should calculate how much of a hit to your bottom line these results are likely to be. If you disagree with any of the evaluations, you may file an appeal, but you must do so in accordance with the applicable procedures and deadlines.

4. Fix All Mistakes

Errors in your records or reports found during an audit must be addressed without delay. To do so, you may need to revise your accounting records, file revised tax returns, or pay any outstanding tax obligations. Taking care of these matters as soon as possible may assist in reducing the severity of any potential fines or interest charges.

5. Keep in Touch with the IRS

Keeping lines of communication open and honest with the tax authorities is crucial. Tell them you’re working on a payment plan or need more time to resolve an outstanding issue. When a business takes the initiative to resolve its common Sales Tax Audit Issues, most tax authorities are willing to work with it.

6. Improve your methods of record-keeping

A sales tax audit is a good opportunity to review your record-keeping procedures. Keeping accurate and up-to-date financial records requires you to think about creating improved systems and processes. This can be useful for preventing future problems.

7. Talk to a Tax Expert

Now is a great moment to talk to a tax expert if you haven’t previously. They can help you through the tax audit process, make sure any necessary corrections are made, and advise you on how to reduce the likelihood of a tax audit in the future.

8. Organize Your Future

The results of a sales tax audit may serve as a wake-up call for your company. Take this time to make preparations for the future. To prevent little problems from escalating into major ones, you should consider conducting frequent internal audits. Always be aware of any tax changes that may impact your company.

9. Maintain a System

Being well-organized is crucial for smooth audit sailing in the future. Keep meticulous and well-organized records of financial transactions, such as sales invoices and tax payments. You’ll save time and show the IRS your seriousness about following the rules by doing this.

10. Keep Your Cool and Keep Going

Finally, maintaining composure is crucial. Anxiety won’t help you pass a sales tax audit, no matter how stressful the situation. Don’t rush things; instead, focus on taking baby steps toward a solution. Keep in mind that your company is not the first nor will it be the last to face challenges like these.

Conclusion

In conclusion, a sales tax audit is difficult, but not impossible to get through. You may successfully deal with the audit’s aftermath if you read the report, comprehend the findings, fix any mistakes or discrepancies, and keep lines of communication open with the tax authorities. Take this chance to strengthen your company’s financial procedures and reduce the likelihood of future audits. You may come out on the other side of a sales tax audit stronger and better equipped for the future if you take the appropriate strategy.