What is Sales Tax?
Sales tax is a tax on the sale of certain goods and service which is paid to the government. You can get into trouble and land in a mess of problems if you collect your sales taxes and spend that money, instead of paying that tax to the state of Texas. You can also get in trouble for failing collect tax on a sale which requires a sales tax. Often, problems arise when business owners do not keep good records of their transactions, or when they fail to properly file their taxes. At the law firm of John McDuff, we handle sales tax issues at audit, at administrative hearings, and in District Court.
Occasionally, on audits, John McDuff is asked to resolve a sales tax issues before there is an assessment of tax. This typically occurs when an issue arises which places a lot of money at stake. However, usually a tax assessment has already been made, and McDuff is asked to take over the case and to appeal it. On occasion, an appeal has been completed, and the client will want to sue in district court.
You may be personally liable for your company’s sales tax liability if you collected sales taxes but did not pay them to the Comptroller of Public Accounts. By statute, the sales taxes collected are a trust fund, for the government. If your company cannot easily and quickly pay the taxes, the Attorney General’s office will collect them from you personally. If no one can pay the tax (neither you nor your company), John McDuff will negotiate a payment plan, if it comes to that. However, at the law firm of John McDuff we strive to beat the tax issue in the very beginning so that you do not have to face this.
Usually the sales tax controversy is over a matter of law. However, too often the case is about the facts. How many sales were there? What was the normal mark-up on the goods that you purchased and sold? The Comptroller uses estimates based upon relationships established over many audits. The task is to prove that the normal mark-up is wrong in your case. As a CPA, John McDuff is well-equipped to handle this type of case for you, as he has done for others in the past.
If you have the misfortune to lose at the administrative hearing, we can sue in state district court. John McDuff has proven to be very effective at this levels. He knows the attorneys, including the supervisors, who handle these cases at the Attorney General’s Office. McDuff’s insight into how they work is important to you, and goes far beyond being a CPA, working on the audit level, or handling a hearing. This is true litigation. We have to be careful, as we must at every stage, to be sure that your expenditures are justified by the size of the reward, and the chances of winning.
Sales Tax Issue? Contact John McDuff
I am John McDuff, and I have years of experience and success handling each and all of these types of tax problems and tax procedures. Call me at 512.457.1177 to schedule an appointment. Based in Austin, I represent clients throughout Central Texas, as well as in other states.