Sales Tax Audits
Accurate representation that protects your business during complex sales and use tax examinations.
Sales tax audits require precise reporting, organized documentation, and a clear understanding of state and multi-state tax rules. Ledger Board manages every stage of the examination, including notices, documentation requests, nexus reviews, and communication with state agents. You receive disciplined representation that minimizes risk, resolves discrepancies, and supports long-term compliance across all jurisdictions.
By the Numbers
Ledger Board supports businesses across industries with accurate sales tax representation and clear compliance strategies. Our experience reflects a strong track record of successful audit outcomes.
200+
Sales Tax Audits Managed
85+ Years
Combined Experience
50 States
supported nationwide
99%
Client Retention
INDUSTRIES WE SERVE
Sales tax audits affect businesses differently based on sales volume, product taxability, and multi-state thresholds. Ledger Board supports e-commerce brands, retail stores, restaurants, logistics companies, manufacturing operations, hospitality groups, real estate service providers, and professional service firms. Each engagement reflects the complexities of sales reporting and state-specific requirements.
Law Firms & Professional Services
Restaurants, Food & Hospitality
Medical & Healthcare Practices
Real Estate & Construction
Retail & E-Commerce
Financial Services
Manufacturing & Distribution
Entertainment & Media
Education
Agriculture & Agribusiness
Energy & Utilities
Technology
Small Business & Startups
Sales tax audits are often triggered by discrepancies between reported sales and third-party marketplace data, inconsistent POS reporting, high exemption usage, or crossing economic nexus thresholds. State agencies also review industry benchmarks to identify irregularities. E-commerce sellers and multi-state businesses face increased scrutiny due to complex filing requirements. We evaluate your sales activity to identify likely triggers and develop a structured response plan.
Common documentation includes sales reports, POS data, bank statements, marketplace facilitator statements, exemption certificates, and product taxability classifications. Some audits require multi-state activity records for nexus verification. We gather and organize all records to meet state standards and prevent delays. Proper documentation strengthens your position during the audit.
Sales tax nexus is the level of activity that creates a tax obligation in a state. This can be physical presence, economic thresholds, or marketplace facilitator rules. Misunderstanding nexus is a leading cause of audits and penalties. We review your sales footprint to identify exposure and build a clear compliance strategy. This helps avoid future assessments and incorrect filings.
Timelines vary based on complexity, number of states involved, and availability of documentation. Simple audits may take weeks, while multi-state or data-heavy audits may extend for several months. We outline realistic timelines at the beginning of the engagement. Structured communication helps maintain progress and reduce uncertainty.
Yes. Penalties may be reduced when records are accurate, explanations are reasonable, or errors resulted from technical or classification issues. We review all assessments to challenge incorrect findings and submit supporting documentation. Proper representation significantly improves your likelihood of penalty reduction.
Multi-state sellers face higher audit complexity due to differing taxability rules, filing requirements, and nexus thresholds. We analyze your sales activity across all states and identify exposure in each jurisdiction. This helps prevent overlapping assessments and supports accurate reporting moving forward.
Yes. Marketplace facilitator laws, economic nexus thresholds, and high-volume transactions create additional scrutiny for e-commerce sellers. We review platform data, seller reports, and marketplace statements to ensure accurate filings. Structured preparation strengthens your defense during an audit.
You have the right to dispute state assessments through appeals, additional review, or supporting documentation. We prepare detailed responses, organize evidence, and advocate on your behalf. Proper representation increases your chances of a favorable outcome and ensures fairness in the process.
Yes. We assume representation at any stage of the audit—even after initial responses or missed deadlines. We evaluate prior communication, correct inaccuracies, and strengthen documentation moving forward. Many clients see improved outcomes after transitioning to professional representation.
Multi-State Expertise
We manage sales tax audits involving multiple states, thresholds, and marketplace rules.
Accurate, Organized Records
Every document and explanation is prepared to meet audit standards.
Responsive Support
We provide timely assistance throughout the entire audit period.
Transparent Communication
You receive clear guidance, updates, and reasoning at every step.
Audit Representation
Protect your position.
We manage communication with state auditors, handle requests, and oversee the full examination. Your audit is approached with professionalism and precision.
Notice Response
Address issues quickly.
We review sales tax notices, determine required action, and prepare accurate responses. This reduces risk and prevents escalation.
Documentation Preparation
Present records clearly.
We organize sales reports, POS data, exemption certificates, and reconciliation records. Proper documentation strengthens your audit outcome.
Nexus & Threshold Review
Identify exposure early.
We review sales activity, marketplace data, and economic nexus thresholds. This clarifies where filing obligations exist and what risks may arise.
Product Taxability Analysis
Correct classification issues.
We examine taxability rules, categories, and rates to identify misclassification risks. Accurate categorization supports compliant reporting.
Resolution & Next Steps
Close the audit confidently.
We assist with adjustments, payment plans, penalty reduction, and future compliance planning. You receive guidance for maintaining stability after the audit.
Testimonials
Business owners trust Ledger Board for structured representation, accurate documentation, and strong support during complex sales tax audits.
Our retail chain faced a large sales tax audit, and Ledger Board organized every document with clarity. Their structure and communication helped reduce a significant portion of the assessment.
Samantha W., COO
Retail
As an e-commerce business selling nationwide, nexus rules are complicated. Ledger Board identified gaps in our filings and guided us through a multi-state audit with confidence.
Brian L., Founder
E-Commerce
Our manufacturing company was audited for taxability classification issues. Ledger Board’s detailed analysis and documentation corrected the state’s initial findings and prevented major penalties.
Harold K., Operations Director
Manufacturing
Connect with Leaders
Our leadership team provides guidance on sales tax strategy, audit preparation, and multi-state compliance. Learn more about the professionals supporting your engagement.
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04. Guidance
Support resolution.
We help negotiate adjustments, prepare corrections, and outline future compliance steps. Ongoing support protects long-term stability.
03. Response
Prepare accurate records.
We organize reports, gather supporting documents, and prepare explanations for the auditor. Every submission meets compliance standards.
02. Analysis
Identify risk areas.
We assess sales data, nexus exposure, taxability rules, and reconciliation issues. Findings shape the audit strategy.
01. Assessment
Review the notice.
We evaluate the audit letter, filing history, and state requirements. This sets the direction for the engagement.
OUR PROCESS
Protect Your Business During a Sales Tax Audit
Sales tax audits require accuracy, detailed documentation, and strong representation. Ledger Board delivers a structured approach that protects your business and supports future compliance. Schedule a consultation to begin your audit engagement.