Sales Tax Audit Triggers to Avoid

Learn which types of actions can trigger an audit or spark an inquiry.

Actions that can spark a sales tax audit

There are many actions that can spark an inquiry or audit. In the infographic below, we cover many of these actions, which include an excess number of exempt sales, a significant increase or decrease in sales, math errors, and refund requests:

Avoid These Sales Tax Audit Triggers

Avoid “red flag” mistakes

While some states select companies randomly for audits, most audits are triggered by red flags, such as filing a late return, paying one type of tax but not registering for sales tax, and experiencing a drop in taxable sales.

By recognizing these red flags, you can take steps to reduce your likelihood of audits.  

Manage compliance and reporting with confidence

Enable your business to effectively automate and streamline indirect tax compliance around the world, including sales tax, use tax, and value added tax (VAT) with Vertex tax solutions. Learn more about how we help you improve process efficiency while reducing audit risk.

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