New York Sales Tax Attorney

Why were you audited by the New York Department of Revenue?

The general answer is that it is random. But here are a few red flags:

1. You filed for a few years, but not all
2. You have multiple late filings
3. You amended your sales tax returns to show less sales
4. You are doing business with a company that is currently being audited.

All of the factors above can play into your chances of being audited. However, the bottom line is that any business can be audited at any time.

Are you signing a statute of limitations waiver at the onset of your  New York Sales Tax audit?

If you are undergoing a sales tax audit, you might be faced with a statute of limitations waiver. By signing the waiver, you are giving the auditor more time to audit your books. This can be advantageous if you have adequate books and records and you can see that the audit is yielding a higher sales tax liability. On the flip side, it does allow the auditor to examine the flaws of your audit that can also result in more problems. However, this does not mean that by signing the statute of limitations waiver for your sales tax audit so that additional years or periods will be examined. Additional periods are only examined when a pattern of underreporting sales tax has been determined during your audit.