10% Penalty Will be Added to All Assessments for Audits Commencing After July 1, 2020
The state of South Dakota found a way to increase their audit assessments by 10%. That’s by adding a 10% penalty to all assessments for audits that commenced after July 1, 2020. Prior to July 1, 2020, South Dakota only applied a 10% penalty to any additional taxes that were assessed in a month that the actual tax return was not filed within 30 days following the month the return was due.
With the South Dakota Department of Revenue Audit Division assessing almost $17.7 million last fiscal year and estimating the tax amount potentially now subject to penalty, businesses are now likely to be on the hook for an additional $1.5 million more to cover the increased assessments auditors will be handing out.
Now There’s a 10% More Incentive to get Your Audit Reviewed
With the state now adding a 10% penalty to all audit assessments, there is even more incentive to have someone with the expertise and experience in South Dakota state and local taxes to review your audit assessment to ensure any taxes you pay are truly the taxes your company owes. This is where Dakota Business Tax LLC can help. We’re lowering South Dakota audit assessments on average by about 57%. That’s over half! Of course, past results are not a guarantee of future results, but it shows the advantage of having a former South Dakota tax auditor review your audit before you write that check.
Dakota Business Tax LLC is Here to Help
At Dakota Business Tax LLC, we help ensure that what is being taxed is truly taxable, taxed under the correct tax laws, or what items can and should be removed. As a former state tax auditor, I know how to correctly explain how an item or service is used, so that the Auditor or Revenue Agent understands that an item or service is truly exempt from tax, so you are not paying taxes you do not owe. We do have contingency fee options.
Contact Dakota Business Tax LLC today at contact@dbtllc.com or call us at (605) 389-7345 to see how our South Dakota Audit Assistance & Defense and Consultation & Advisory services can help you, your business, or your clients, and to answer any questions that you may have.
