This video explains the sales tax basics and what states look for during a sales tax audit of an auto dealership business. In a sales tax audit of an auto dealer, states regularly use third party data, such as DMV data, 1099-k reports, and federal returns to estimate the amount of sales tax due by the business. It can be problematic if the business or CPA volunteers the wrong information. Finally, the production also discusses the importance of having a professional like a sales tax lawyer, CPA, or former auditor handle the sales tax audit. It does not focus on a particular state, but rather lays out the process from a multi-state perspective.