Tag Archives: Sales Tax Audit

What kind of records should I keep?

Courtesy of the IRS [TaxMama note: This is one of the top questions businesses should be asking, but rarely do!] You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business […]

TaxMama’s Tax Quips and Audit No-Nos

Today TaxMama hears from a tax professional with a problem: “My client is being audited by IRS. I live in another state. She sent me the records and I asked IRS to move the audit to my state or to do it by phone. After she sends me the records AND after I ask IRS […]

Sales Tax On Purchases

Today TaxMama hears from Sam in Texas who asks. “A construction company pays sales tax when it purchases items from places like Home Depot. Everything it buys is used in customer’s homes, like carpets that are installed and then billed to the customer. Does this qualify as re-sale/tax-exempt?”