CBIA Top 10 Audit Mistakes 5 09 (3).PPT

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TOP 10 AUDIT MISTAKESFelicia S. Hoeniger, Esq.Robinson & ColePaul Greenfield, Tax Unit ManagerConnecticut Department of Revenue Services1Introduction• Connecticut Sales and Use Taxes – Why Should You Care?– Overview– Real-Life Examples– Resources• The Audit Process– Audit Selection– What To Expect– Post-Audit Options• Top 10 Audit Mistakes– Cardinal Sins – General Mistakes– Mistakes a Sales Tax Expert Will Not Make2Why Should You Care?• DRS Search HomeAbout UsPublications & FormsContact Us• 100 of the Top Delinquent Business Taxpayer Accounts• The Top 100 Delinquent Business Taxpayer Accounts (Sales, Withholding and Corporation Business Taxes) List will next be updated (i.e., deletions and/or additions) mid May 2009.• 100 of the Top Delinquent Business Taxpayer AccountsDeficient in Excess of 90 Days as of April 1, 2009 ••• SPROCKET SPORTS LLC20 EXCALIBUR BLVD Sales and UsePLAINFIELD, CT $1,147,288.87••WHITE OAK CORP7 WEST MAIN ST Sales and UsePLAINVILLE, CT $928,146.51••RENAISSANCE MANAGEMENT CO300 WHALLEY AVE FL 3 Sales and UseNEW HAVEN, CT $706,634.21••B G A INCORPORATED113 GRAND AVE Sales and UseNEW HAVEN, CT $667,408.21••ZAR B S JAVED I561 NEW HAVEN AVE Sales and UseMILFORD, CT $653,593.63••3Sales & Use Taxes Overview• If it Was Easy We Wouldn’t Be Here• Connecticut Sales & Use Taxes Apply to– All Sales of Tangible Personal Property, • Unless Exempt–1 1 6 E x e m p t i o n s– Sales of Enumerated ...

Informations

• Publié par: Oslu
• Nombre de lectures: 17
• Langue: English

Extrait

TOP 10 AUDIT MISTAKES

Felicia S. Hoeniger, Esq. Robinson & Cole

Paul Greenfield, Tax Unit Manager Connecticut Departmenotf Revenue Services

1

Introduction

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Connecticut Sales and Use Taxes – Why Should You Care? – Overview – Real-Life Examples – Resources The Audit Process – Audit Selection – What To Expect – Post-Audit Options Top 10 Audit Mistakes – Cardinal Sins – General Mistakes – Mistakes a Sales TaExxpert Will Not Make

2

Why Should You Care?

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DRS Search HomeAbout UsPublications & FormsContact Us 100 of the Top Delinquent Business Taxpayer Accounts The Top 100 DelinquentBusinessTaxpayecrc oAunts (Sales, Withholding and Corporation Business Taxes) List will next be  updated (i.e., deletions and/or additions) mid May 2009. 1 D 0 e 0 fi   c o i f e  t n h t  e i   n T   o E p x   c D e e s l s i   n o q f  u 9 e 0 n   t D B ay u s s   i a n s e   s o s f  T A a p x ri p l  a 1 y ,  e 2 r  0 A 0 c 9 c   ounts

SPROCKET SPORTS LLC 20 EXCALIBUR BLVD Sales and Use PLAINFIELD, CT $1,147,288.87

WHITE OAK CORP 7 WEST MAIN ST Sales and Use PLAINVILLE, CT $928,146.51

RENAISSANCE MANAGEMENT CO 300 WHALLEY AVE FL 3 Sales and Use NEW HAVEN, CT $706,634.21

B G A INCORPORATED 113 GRAND AVE Sales and Use NEW HAVEN, CT $667,408.21

ZAR B S JAVED E  I N AVESaleand 561 NEW HAV s Use MILFORD, CT $653,593.63

3

Sales & Use Taxes Overview

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If it Was Easy We Wouldn’t Be Here Connecticut Sales & Use Taxes Apply to – All Sales of TangiblPeersonal Property, • Unless Exempt – 116 Exemptions – Sales of Enumerated Services Use Tax – Just Because Your Vendor Did Not Charge You Sales Tax Does not Mean You Don’t Owe Use Tax

4

Are Your Sales Subject to Tax?

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Answering this Question Before You Make A Sale – Connecticut General Statutes – Connecticut Department of Revenue Services • Taxpayer Services • Publications – Getting Started in Business – Special Notices – Rulings – Informational Letters

5

Are Your Sales Subject To Tax

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After You’ve Made A Sale, But Before An Audit

– Amnesty

– Voluntary Disclosure

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Are Your Sales Subject To Tax

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After An Audit When The Department of Revenue Has Said Your Sales Are Subject To Tax – Superoir Court Tax Session – Appellate Court – Connecticut Supreme Court – US Supreme Court

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Real Life Examples

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Oxford Tire Supply v. Commissioner

Main Port Fish & Chips v. Commissioner

William Raveis Real Estate v. Commissioner

Unnamed Property Manager

8

The Audit Process

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Audit Selection Methods – DRS Will Not Tell You – And They Don’t Have to – Likely Sources • Audits of your customers or suppliers • Information from the Federal Government or another State • Angry People (competitors, neighbors, ex- spouses)

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What To Expect During An Audit

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Audit Notice Agree on A Schedule Auditor’s Guidelines (Paul, can we get a copy of the auditor’s checklist to hand out?) Information Requests Workpapers Informal Conference Final Bill

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What To Expect After An Audit

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Right to Appeal to Appellate Division – 60 Days After Final Bill Right to Appeal to Superior Court – 30 Days After Final Determination

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