We offer comprehensive services ranging from sales and use tax training, to our specialty of defending and protecting the interests of businesses during sales tax audits.
Audit Defense & Payment Arrangements
Davis, Davis & Harmon LLC constructed a sales tax defense to resolve an audit that lingered over 12-months
RMI Constructionon Inc. is a commercial and residential marble contractor based in Irving, TX which serves the DFW metroplex area. Annual sales average of $1,500,000 over the 4 years of the audit period. The company’s clientele includes restaurants, supermarket chains, gas station outlets, and residences. The company was selected for a routine Texas sales/use tax audit and chose their CPA firm to handle the audit.
RMI had been accessed more than $500,000 including penalties and interest during the Texas sales tax audit.
The taxpayer CPA engaged Davis & Davis to represent RMI and to effectively defend them during audit and redetermination phase of the sales tax audit.
The auditor was not sympathetic when asked to give more time after the audit had gone on for a year prior to Davis & Davis being engaged to assist RMI with the outstanding audit issues.
Strategy Leads to Big Win
Davis Davis & Harmon LLC (DDH) implemented an audit defense strategy which won over the auditors and saved the client millions.
DDH was engaged by a client to manage a routine sales/use tax and business/occupational license tax audit for the state of Washington. DDH took over the audit midstream and had to contend with a series of unwieldy audit schedules with unsubstantiated tax assessments and liabilities.
Davis Outperforms Goliath
Client was selected for a routine sales/use tax audit and hired a Big 4 consulting group to manage the audit. Because the audit lingered over five-years in the hands of the Big 4 firm, the auditor closed the audit reflecting a huge tax liability which was later appealed. DDH was hired during the appeals process to defend the audit.
Data Technology Meets Compliance
DDH was engaged by a Fortune 500 retailer and power-generation company to perform a sales tax compliance review to identify potential audit exposure, design the detailed transaction data file, improve their compliance process, and implement
audit sampling best practices.