I have a convenience store and I’m being audited. They couldn’t prove my sales because I have a really old register system so the auditor went off of my cost of goods sold. So there saying that everything I bought, I sold and marking it up like 25%. I think it’s really unfair and am going to try to appeal it. Do I have a case? Am I going to win?
Posted by Good-Economy-3900
2 Comments
I mean unless you can prove what was stolen that’s a decent way to do it. You bought 1000 Pepsis in December and then in January you bought 750 more and in February you bout 600 and at the inventory at the end of February you have 200 left, a reasonable person would assume 2150 were sold minus shrinkage, and you sell them for 2.50 a piece then 5375 is the taxable amount. What are we missing.
You need to get in touch with a good CPA and dispute the audits results and have the CPA prepare an appeals protest.
I would probably go off bank deposits for the audit period unless you’re using an accrual method of accounting. Gross bank deposits for the period x sales tax rate = your sales tax liability (assuming all sales are taxable).
Don’t handle this on your own, there’s interest and penalties involved with this too. Seriously, get a professional.