Audit Defense

Being audited by the State can be a daunting experience if you don’t know what you are doing or what to expect. You could end up paying a large tax assessment, unnecessarily. It is essential to have someone knowledgeable of the sales and use tax law, regulations and audit procedures on your side when meeting with CDTFA auditors. At ARC, we have helped many clients in reducing their tax assessment by being present in meetings with auditors and helping to get the correct information into the auditor’s hands. Fees for our Audit Defense services are generally based on time and expenses, but can sometimes be offered on a contingency fee basis.

General Sales & Use Tax Consulting

Sometimes you just need a fresh set of eyes to review the books. We can review your invoices and search for sales tax exemptions that your company is missing out on. General consulting services are billed on a time and expense basis.

Managed Audit Program (MAP) Assistance

When selected for a sales and use tax audit, a business may want to consider a managed audit.  The CDTFA offers taxpayers the ability to conduct their own audit under the “Managed Audit Program (MAP)”, which is a type of self-audit with instructions and guidance provided by a CDTFA auditor.  The benefit of participating in a MAP is the CDTFA will charge interest at one-half the rate on the final audit assessment. The fees for ARC assistance with a MAP are based on time and expenses. 

Reverse Audit & Refund Assistance

A reverse sales and use tax audit is an internal audit conducted to determine if a business has overpaid sales or use taxes. There are many exemptions or exclusions that could apply to your business. If you are unaware of these exemptions or exclusions, you could be losing a great deal of money. If we conduct a reverse audit and determine that your company has overpaid taxes, we will work with you to file claims for refund and make sure your money gets back into your hands.

Our services for Reverse Audits are billed on a contingency fee basis.  This method of payment is optimal because our clients do not have to pay for our services unless we find and retrieve refunds.

Voluntary Disclosure Program (VDP) Assistance

The CDTFA administers two voluntary disclosure programs for reporting use tax.  The In-State VDP is available to an in-state purchaser with the purpose of reporting use tax on purchases from retailers located outside California.  The Out-of-State VDP is available to out-of-state businesses with the purpose of reporting use tax on sales to California consumers.  For both programs, the business must come forward voluntarily before they are contacted by the state. The benefits of participating in a VDP are 1) use tax is only assessed for three prior years as opposed to a maximum of eight years if the state discovers a taxpayer has not been reporting use tax, and 2) the late filing and late payment penalties are generally waived. ARC assistance with applying for and being accepted into a VDP are offered on a time and expense fee basis.