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Oklahoma to intensify sales tax audits


 Oklahoma is about to get serious about sales and use tax audits.

Update 11.29.2016: Senate Bill 1579 was enacted. As a result, the Tax Commission is increasing sales and use tax audits.

Facing a notable gap in the budget, Oklahoma lawmakers are getting creative. They have already extended tax to many remote sales (effective November 2016). Now they are looking to enhance audits. The bill has been sent to Governor Mary Fallin’s desk and she is expected to sign it.

Senate Bill 1579 directs the Oklahoma Tax Commission to “enhance agency enforcement efforts related to sales, use and income tax.” Specifically, it charges the commission to “discover and reduce fraud and abuse of sales and use tax exemptions provided pursuant to the Sales and Use Tax Codes and the nonfiling and underreporting of sales and use taxes due and owing.”

How to tackle this? With technology and more staff. The commission should hire more auditors and enhance “sales and use tax auditing with technology systems designed to identify underreporting of sales and use taxes and the electronic reporting of information of exempt sales by vendors.”

In addition, if House Bill 3205 is enacted, the state will have less time to provide sales tax refunds. The measure seeks to reduce the statute of limitations from three years to two for taxpayers seeking sales or use tax refunds.

Retailers doing business in Oklahoma should increase efforts to be sales and use tax compliant. Learn more about automated end-to-end sales tax compliance solutions.

photo credit: Audit via photopin (license)


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.