New York Sales Tax Professionals

Sales Tax Audits in the State of New York

Sales tax audits in New York can be complex and challenging, as the state administers one of the most aggressive sales tax systems. The Department of Taxation and Finance conducts audits to verify that taxpayers have paid the correct amount of tax. During an audit, taxpayers may be required to provide documentation to support their reported sales and purchases.

It's essential for businesses to maintain detailed and accurate records of their sales and purchases to withstand a sales tax audit. In New York, audits can typically go back three years, and the process can vary in duration depending on the complexity of the business.

To avoid a sales tax audit, businesses should ensure they report all sales accurately and keep meticulous records. It's also vital to stay informed about the guidelines and procedures outlined by the New York State Tax Department regarding sales tax audits.

In the event of a sales tax audit, it may be advisable to seek professional assistance from a sales tax lawyer who is familiar with New York tax laws and can guide businesses through the audit process. Having expert guidance can increase the chances of reaching the best possible agreement with the Tax Department. 

The New York Sales Tax Audit Process

The New York sales tax audit process begins by after you receive a notice from the New York Department of Taxation and Finance. The next step is attending an initial meeting with state auditors to discuss the nature of the audit.

Once the Department devises an audit plan, the auditor will conduct a thorough examination by reviewing three to four years’ worth of your books and records to identify any discrepancies in your New York Sales tax return. In the end, the auditor will issue a report of all sales and use tax adjustments.

If you are not satisfied with the final assessment, you have the right to appeal or protest the auditor’s findings. It is important to understand that you have a sales tax professional on your side throughout the entire process.

At Sales Tax Helper LLC, our firm knows how to work with auditors to help local business owners obtain the best possible outcome in their case. Our NY sales tax team has decades of experience handling state sales tax matters.