Audit Remands

Many taxpayers are unfamiliar with tax audit procedures and fail to provide the business records needed for a proper tax audit. This often results in excessive tax assessment based upon an auditor’s estimate of income derived from the taxpayer’s activities within the state. In some cases, the state tax department may issue a “jeopardy” assessment to protect the state’s right to collect taxes that might otherwise become barred from collection because of approaching assessment deadlines. An appeal from such assessments is often fruitless, because state tax laws are designed to protect the state’s right to impose taxes on uncooperative taxpayers. In these instances, it is often better to seek to have the assessment remanded to the auditor so a proper audit can be completed, overly aggressive “estimates” can be eliminated, and the taxpayer can have the opportunity to show why taxes may be inappropriate on some or all of its transactions. The Risenmay Law Firm has the knowledge and experience necessary to obtain audit remands and to work cooperatively with these auditors to ensure that the final assessment is correct. In several instances, audit remands have led to the total elimination of tax assessments or even to tax refunds for the client.