Why You Need Tax Audit Assistance

Doctor’s Assoc. v. Dept. Of Revenue, 2006 SD 18. Doctor’s Associates Inc. lost its appeal to the South Dakota Supreme Court and had to pay a sales/use tax audit assessment. The original audit assessed was $270,666.70. However, more than likely the final amount paid included additional interest.

Unfortunately, based upon this type of business and South Dakota tax laws involved, the $100,000 or more that was paid was likely, not due. Doctor’s Associates Inc. paid because it appears the auditor never mentioned the non-taxable items. In addition, it also appeared no one in defense of Doctor’s Associates Inc. identify the non-taxable items until it was too late. The South Dakota Department of Revenue invoked SDCL 10-59-7 disallowing records presented after 60 days from the start of the audit that could have identified the non-taxable items.

Importance of having your audit reviewed

Audits like these emphasize the importance of having a former tax auditor involved in your audit. We could have helped identify those non-taxable items during the audit. If you would like a team approach with a law firm, please contact us. We can connect you with several excellent attorneys we have worked with and had great success with.

Audit Assistance

We are lowering audit assessments on average by 62% and $109,667. Of course, past results are not a guarantee of future results. However, it shows the value and importance of having a former auditor with experience and expertise in South Dakota tax law to review the audit.

Contact us at Dakota Business Tax LLC because we can help.