New Jersey Sales Tax Audit Defense Attorney
Top-Rated Lawyer For Sales Tax Audits Helps Business Owners In Camden County, Burlington County, Gloucester County, and Throughout South Jersey Facing Penalties From A Sales Tax Audit
Audits of New Jersey businesses are conducted differently than audits of individual New Jersey taxpayers. And if your business was selected for a sales tax audit, you might find yourself facing significant fines. Before you fret about this, recognize that this outcome may not be entirely your fault. The tax code is very complicated and even if you do your best to keep accurate books, you may still make mistakes. Unfortunately, these simple mistakes can be quite costly. Let an experienced New Jersey sales tax audit defense attorney help.
At The Law Offices of Michele Finizio, our top-rated sales tax audit defense attorney helps New Jersey businesses that are facing sales tax audits reach favorable outcomes. Our skilled team provides businesses with valuable counsel regarding best practices for greatly reducing the chances of a future sales tax audit.
Skilled New Jersey Defense Attorney Addresses The Most Common Reasons For A Business Tax Audit In New Jersey
If you have a business, there is no way to completely eliminate the possibility of being subject to a tax audit. But there are common characteristics among businesses that come under the scrutiny of a tax audit and they are as follows:
- Previous audit history: if you had a prior audit that resulted in an assessment, you are more likely to receive notice of a future audit
- Embarking on a new business activity: if your business is opening a new location, undergoing new construction, or is in the midst of a new expansion, your likelihood of being audited increases
- Sales and exempt sales: the volume of sales and exempt sales — and the ratio of the two — that you report to the state of New Jersey may prompt an audit
- Change in sales numbers: any change in the ratio of total sales to exempt sales may bring about a tax audit
Knowledgeable New Jersey Defense Lawyer Assists New Jersey Businesses With Tax Audits
One small error on a business transaction can increase your sales tax liabilities. And, in many cases, the reason for a sales tax audit can be attributed to not having the proper paperwork and documentation. Once you receive notice of a sales tax audit, it is important to collect all of your paperwork and make sure it is organized and detailed. The documents that you may need for your sales tax audit include the following and more:
- Sale and use tax returns
- Fixed-asset purchases
- Exemption certificates
- Non-asset expense purchases
- Sales invoices
- Business transactions
The auditor will review these documents to determine whether you charged sales tax when required by law, whether you correctly calculated the sales tax, or whether you appropriately exempted the purchase from sales tax.
It is helpful to understand that your paperwork is a reflection of how your business conducts certain types of transactions. If one transaction is flawed, then the auditing system may automatically conclude that all of those kinds of transactions violated New Jersey tax law, even if it was a one-time error. When one flawed transaction is viewed as likely one of many similar flawed transactions, the fines brought against you pile up quickly. A knowledgeable New Jersey sales tax audit defense attorney will not only take steps to prove that the incident was an unusual occurrence, but they will review your paperwork to uncover and correct any sales tax issues before they are submitted with your audit paperwork.
Have Questions About Your Tax Audit? Trusted Defense Lawyer At The Law Offices of Michele Finizo Offers Free Confidential Consultation to New Jersey Business Owners
Being a business owner is a challenging endeavor and it is difficult to keep every aspect of your business running smoothly every day without any mistakes. If you are facing a tax audit or are simply concerned that your recordkeeping might not be in the best shape, contact an experienced sales tax audit defense attorney at The Law Offices of Michele Finizio. Our skilled team will review your books, alert you as to items that may set off a red flag, and help you correct any discrepancies. So if you are called for an audit of your business, you can rest easy knowing that your paperwork is in good working order. Schedule your free confidential consultation with our office today.
Frequently Asked Questions (FAQs) About Sales Tax Audits
Yes. In New Jersey, the statute of limitations for tax audits is generally four years. After four years, the New Jersey Division of Taxation may not conduct an audit without your written consent. The exception to this tax audit statute of limitations is the Gross Income Tax, which has its own legal timeframe for audits. The statute of limitations for tax audits does not apply during any period of time where the taxpayer failed to file a tax return, failed to report Federal changes, or during the time the taxpayer filed a fraudulent tax return in order to evade paying tax. New Jersey statutes of limitations do vary depending upon the specific tax law; consult with an experienced New Jersey sales tax audit defense attorney at The Law Offices of Michele Finizio regarding the legal timeframe for your audit.
Trust fund taxes are taxes that a person or business is required by law to collect on behalf of the state of New Jersey and pay to the New Jersey Division of Taxation. Sales tax is one of the most common types of trust fund tax. Business owners, corporate officers, business partners, and some employees may be found legally responsible for collecting and paying these taxes to the state. These individuals can be held personally liable if they fail to collect the sales tax when required, or for failing to file the required returns by the due date.