Services

We specialize in Sales Tax Audit Representation and Defense, Audit Sampling and Estimation Analysis, Tax Refunds and Overpayment Recovery, and Tax Compliance Solutions.

Audit Representation and Defense

Dunn Tax Group diligently and effectively represents clients involved in state sales tax audits and/or audit controversy. Our representation and defense strategies streamline the audit process and facilitate timely audit completion. Our goal is to protect client interests, making sure no more tax is paid than legally owed while also pursuing tax refunds clients are due.

We manage the audit process from beginning to end, allowing our clients to focus on their business and minimize interaction with audit staff. Alternatively, we can focus on specific audit areas of concern or controversy.

Our service includes, but is not limited to:

Meet with audit staff and other taxing authority personnel to discuss audit scope, audit timeline and use of appropriate sampling procedures.
Assemble and produce records for the taxing authority including clear documentation and research in support of refunds or in defense of disputed transactions.
Monitor and manage audit adjustment schedules and information exchanged between our client and the taxing authority to ensure accuracy of the information provided.
Facilitate audit progress and resolution while ensuring auditor-imposed deadlines are met and no undue delay by audit staff.

Identify transactions and issues that are material in nature and whether transactions involve issues that can be successfully defended.
In situations involving missing documentation and proposed estimations by audit staff, we will identify and analyze the best information available to calculate or reduce the tax liability.
Utilize the taxing authority’s audit management, audit policy and tax policy to assist in resolving controversy.
Represent clients in reconciliation conferences, independent audit reviews, administrative hearings proceedings and audit settlement.

Audit Sampling and Estimation Analysis

Audit Sampling and Estimation Analysis sets Dunn Tax Group apart from most firms.

The taxing authority’s use of sampling or estimation procedures may grossly overstate a sales tax liability; Therefore, it is critical to evaluate the methodology used by audit staff. We analyze and evaluate samples and estimations early in the audit process which often results in refinement of the procedure used, resulting in a more representative sample or estimate.

Audit Sampling

We work directly with audit staff to identify areas of concern related to sampling. Depending on the information and data available, an audit can often be completed without use of sampling.

If sampling is used, we collaborate with the auditor to determine the appropriate sample type based on business activities, record-keeping, and volume of records. We analyze data to identify homogeneous populations that are often best sampled separately or that reflect business activity or extraordinary transactions not suitable for sampling.

Dunn Tax Group utilizes various techniques when evaluating samples and errors. Based on our evaluation, changes to the sample may be warranted if the change will result in a more representative sample.

Audit Estimation

Audit staff may estimate a portion, or all, of the audit liability when the records necessary to conduct the audit are missing or incomplete. Auditors have significant discretion as to how an estimate is made and which records constitute the “best information available” used to make the estimate.

Estimation procedures utilized by audit staff are often flawed and not representative of the taxpayer’s business operations, its sales, or its purchases. This frequently results in an overstated tax liability.

It is critical to address estimations during audit fieldwork, prior to audit processing. Dunn Tax Group works directly with audit staff to address concerns related to the proposed estimation methodology. We analyze documentation to determine whether alternative, more representative, information will result in a better and more accurate estimation.

Tax Refunds and Overpayment Recovery

You May be Due a Tax Refund.

Businesses may be unaware of tax exemptions and exclusions from tax for which they may be eligible. Dunn Tax Group leverages its experience and knowledge of complex sales and use tax laws and policy to identify and pursue refunds and tax overpayments you are legally due.

Auditors are tasked to perform audits quickly while covering areas of material tax exposure. This often results in audit staff failure to identify and allow legitimate qualifying refunds, credits of sales taxes paid to vendors for items resold, and use tax reported in error.

Refunds, credits and tax overpayments may be included in an audit which results in a reduced audit penalty and interest. Alternatively, refunds, credits and tax overpayments may be obtained outside the scope of an audit either directly from vendors or directly from the taxing authority with credit interest paid.

Tax Compliance Solutions

State and local tax compliance can result in significant cost and time savings for your business.

Dunn Tax Group provides individualized training and compliance solutions that enable clients to confidently take control of their state and local tax reporting responsibilities. Diligent tax compliance often results in lower audit liabilities and less audit controversy.

Our state and local tax compliance solutions include: