Georgia Sales Tax Audit

GA Department of Revenue Sales Tax Audit Defense

Georgia Sales Tax Audits

What is a Sales and Use Tax Audit Defense?

A sales tax audit is performed by the Georgia Department of Revenue to determine if your company has collected and paid the correct amount of sales (and use) tax to the State of Georgia. This type of exam is time consuming and resource intensive. The state auditor will review financial documents, audits, point-of-sales records, and other data points to determine the amount that was payable to the state. Audit defense involves determining whether your company is subject to GA sales tax compliance, and then a detailed review of the relevant business records, calculations, and transactions to determine compliance and exposure. Knowing where the issues are before the state identifies them positions us in a better position to mitigate and negotiate with the State. Throughout the process, we act as your company’s representative with the State, reducing your tax department’s time invested in the audit and exposure to the auditor.

How long will the Sales Tax Audit take?

The length of the audit will vary greatly between companies. Some of the factors that influence the timeline include:

  1. Size of the company
  2. Existance and organization of documentation
  3. Number of years at issue
  4. Number and type of transactions in Georgia
  5. Complexity of the issues and data

In most cases, a simple audit will last a few months. More complex audits can potentially take years to fully resolve.

When do I have to collect Sales Tax in Georgia?

Georgia requires businesses to collect and pay sales tax under a number of conditions, including:

  1. If you operate a physical location within the state
  2. If an out-of-state seller has an affiliate business located in Georgia
  3. If an out-of-state seller pays a Georgia business for referring customers or leads, so called click-through nexus
  4. If an out-of-state seller has $100,000 in gross sales or more than 200 transactions within the state in a year, so called economic nexus
  5. If an out-of-state seller stores inventory within the state, even if it is through a third-party such as Amazon’s FBA program
  6. If an out-of-state seller takes orders or sales at a convention or trade show in Georgia.

A detail review of whether the company is subject to sales tax in Georgia is performed as part of the audit defense.

If you have received a notice or letter from Georgia, call us now!

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Time is of the Essence.

If you have received a Notice or Letter from the IRS, set up an advisement session as soon as possible. You need a plan to respond before it is too late. Do not ignore it. The IRS does not go away!