Why Would Somebody Want to Appeal a Sales Tax Deficiency?
The obvious reason is that you may not agree with the findings of an auditor. However, the most compelling reason as to why you would want to appeal an audit is so that you can preserve your right to protest.
Why Preserving Your Right to Protest Matters
- The further down the line your audit and collections process goes, the more difficult it becomes to protest any debt that may have arisen from the initial audit.
- Penalties accrue—including:
- Late payment penalties
- Failure to pay penalties
- Even fraud penalties
- All these penalties are based on the assessed balance.
Call our office to appeal your sales tax audit – It will be more fruitful than putting you on a payment plan for money that you do not owe!
By: Mansoor Ansari J.D., LL.M. (TAX)
Phone: (888) 577-1482
Frequently Asked Questions
Why would someone appeal a sales tax deficiency?
Someone may appeal a sales tax deficiency because they disagree with the auditor’s findings. More importantly, filing an appeal preserves their legal right to formally protest the assessment before additional penalties accrue or collection efforts intensify.
What does it mean to preserve my right to protest?
Preserving your right to protest means keeping open your legal avenues to challenge a tax assessment. If you fail to appeal promptly, it becomes much harder—or even impossible—to contest the debt later, regardless of its accuracy.
What types of penalties can accrue if I don’t appeal a sales tax audit?
Penalties for not addressing a sales tax audit can include late payment penalties, failure to pay penalties, and fraud penalties. These penalties are assessed on top of the original tax balance, compounding your financial liability.
Is paying on a payment plan a good idea if I disagree with the audit?
No. Entering into a payment plan acknowledges the debt and can eliminate your chance to dispute it. It’s generally better to appeal the audit first rather than pay money you do not legally owe.
How can I start the process to appeal my sales tax audit?
Contact a tax professional experienced in sales tax audits as soon as possible. Firms like ours can help you file the necessary appeal documents quickly, giving you the best chance to resolve the matter in your favor.