Austin Texas Sales Tax audit
The COMPTROLLER will look for instances where your business has collected sales tax from customers but failed to remit all or part of these monies to the state. Collecting but not remitted Texas taxes (think Sales Tax or Unemployment Tax) is one of the worst possible things a business owner can do with regard to Texas taxes. If you consider penalties and interest to be painful, then you might be surprised to find out that collecting but not remitting Texas taxes can land a business owner in jail. Under Texas law, collecting but not remitting these “trust fund taxes” is considered stealing from the state and the business owner and employees can be charged with as high as a felony under certain circumstances.
Even if you feel you have been compliant, we strongly recommend that you do not represent yourself during as Texas tax audit. The Texas Department of Revenue auditors have many tricks up their sleeves that can limit your rights under Texas law. It is vital to have a knowledgeable and experienced tax professional to assist you through all stages of the audit, from the initial notice through to its conclusion.
By: Mansoor Ansari J.D. LL.M. (TAX)