What triggers a sales tax audit?

A recent study sheds light on the industries and business activities that trigger sales tax audits. Is your company at risk?

Many finance and accounting professionals are aware that sales tax audits can happen to any company, but often it’s not until the state auditor knocks on the door that we ask, “why us?”

To help understand why they happen, we joined forces with state and local tax consultants Peisner Johnson & Company to analyze 64,000 sales and use tax audits spanning 20 years. The results of our extensive study may surprise you.

Learn about why your industry may be more commonly targeted by state auditors, the business activities that trigger audits, common compliance errors, and more. If your business collects and files sales and/or use tax, this report is essential reading.

Get the facts about why audits happen, including:

Which businesses get audited
Nearly 60 percent of audits target just four industries. See if your company has a greater chance of a potentially costly audit.

Where they get audited
One-third of audits are aimed at companies headquartered in another state. If you sell products or services in another state, learn why you need to shore up your compliance.

Business activities that can trigger an audit
Our study reveals the most common activities that can trigger audits, by industry.

The cost of an audit
Audits are expensive. Learn why penalties, fees, and professional counsel typically add up to six figures.

A checklist for quick, painless audits
Get simple tips to optimize compliance practices for more error-free, streamlined audits.

Read the report

Stay a step ahead of the state auditor with our insight-packed report.