Sales Tax Issues

If you are currently the subject of a Pennsylvania sales tax audit, do not waste any time in obtaining Frost Law’s legal services. While getting audited can be an intimidating experience, our PA sales tax audit attorneys can ease your worries while helping you through the process. Frost Law has represented countless clients through their PA sales tax audit cases.

Our tax attorneys can work with you to get your business in order so that the audit process goes as smoothly as possible. If complications do arise, we can walk through the various defenses at your disposal to successfully fight any legal penalties.

What is a Sales Tax Audit?

In Pennsylvania, a sales tax audit occurs when the state examines a business’s financial information to determine if it has remitted the appropriate amount of sales tax to the necessary government agencies. All businesses with a Pennsylvania economic nexus are eligible for a potential audit.

Economic Nexus

An economic nexus is a concept which was adopted by most states in 2019. While the details vary, it essentially means that a State can require businesses to register for a sales tax permit and remit sales tax if:

• The business exceeds a certain threshold of sales, or
• The business exceeds a certain number of sales

In Pennsylvania, businesses that produce gross sales of $100,000 or more must register for a sales tax permit. If you need assistance with the registration process, contact Frost Law immediately to get started. We can help you follow the proper registration and remittance procedures to ensure your business is following State guidelines.

Factors that Could Lead to an Audit

It is extremely difficult to determine what may lead to a business being audited. Even if a company follows the rules, it may still be randomly audited by the PA authorities. However, there are certain factors that the State tends to look for when determining who to target. Some of these factors include:

• The type of industry the business is in
• A business’s past audit history
• Fluctuations within a business’s sales revenue
• The amount of sales exemptions the business has claimed

Audit Prone Industries

Certain industries may naturally be more likely to be audited due to the way they conduct their operations. These industries include:

• Retail
• Construction
• Food Service
• Manufacturer
• Wholesale/Distributor
• Cash-based businesses

Contact our Pennsylvania Sales Tax
Audit Attorneys

Pennsylvania sales tax audits are complex procedures with many fast-moving parts. While being caught up in such a situation without the right legal guidance could be devastating to your business, this can be avoided by contacting Frost Law. Our PA sales tax audit professionals can help you understand what to expect out of the audit process. We can help you provide the necessary documents to prove your compliance with State regulations.

If you are facing any legal penalties for past mistakes or oversight, we will build your defense case and ensure that your business is protected from any unnecessary hardships. Call us at (717) 251-5029 or fill out the contact form for an initial consultation.