When operating a business in Oklahoma, you may be responsible for paying sales tax. Failing to do so can land you in hot water with the Oklahoma Tax Commission. If the Tax Commission catches on to your failure to pay these required taxes (and they most likely will), you can expect to have to produce a large volume of records for their review. Cooperation is important to improve your chances of an acceptable resolution to the tax debt.
Types of Records That May Be Reviewed
If your business is investigated by the Oklahoma Tax Commission for failure to pay sales tax, you will be asked to produce the following important company records:
- Your business’s books of account, including your income statements, balance sheets, ledgers, and other records that summarize your business operations
- State and federal income tax returns
- Original documents, including sales invoices, purchase orders, contracts, and bank statements, that support the transactions that are entered in your company’s books
- Copies of any documentation pertaining to a state sales tax exemption
- Copies of Oklahoma sales tax returns, including supplements
What the Tax Commission Is Looking for During a Review
Once you have produced the necessary records, the Oklahoma Tax Commission will begin a thorough review to determine the extent of the sales tax that is owed. The Commission will likely engage in the following:
- Comparing the total sales recorded in the books of your business to the total sales reported on your business’s income tax returns
- Comparing the total sales recorded in the books of your business to the total sales reported on your business’s sales tax returns
- Comparing the business’s claimed sales with the sales that were claimed on any resale certificates
Depending on the results of the findings, you may face a serious tax problem. Fortunately, there may be an alternative solution available to you. We can help you work through these issues so that you can move on with the daily activities of your business. We encourage you to reach out today—send us an email!