Sales Tax Audits: The Hidden Risk for Small Businesses

Episode Summary

In this episode of Thorgood Tax Talk, tax defense attorney Shamsey Oloko explores the critical topic of sales tax audits, a significant concern for small business owners. The discussion covers the differences between sales tax and income tax audits, the types of businesses most at risk, common mistakes like commingling funds, and the severe consequences of non-compliance, including penalties and criminal charges. Listeners will gain practical strategies to minimize audit risks, such as timely filing, proper fund segregation, and professional assistance, ensuring their businesses remain compliant and protected.

Key Timestamps

00:00 - Show Introduction and Welcome

01:30 - Overview of Sales Tax Audits

04:00 - Sales Tax Audits vs. Income Tax Audits

07:00 - Small Businesses Most Vulnerable to Sales Tax Audits

10:30 - Common Mistakes: Commingling Funds and Misreporting

14:00 - Consequences of Sales Tax Non-Compliance

18:00 - How States Track Sales Tax Irregularities

22:00 - Cash Transactions and Audit Challenges

26:00 - Common Misconceptions About Audit Risks

30:00 - How Far Back Can States Audit?

33:00 - Penalties and Enforcement Actions

36:00 - Preventing Criminal Charges in Sales Tax Audits

39:00 - Steps to Reduce Sales Tax Audit Risks

42:00 - Importance of Documentation and Professional Help

45:00 - Conclusion and Call to Action

About the Show

Thorgood Tax Talk is a podcast dedicated to helping business owners and individuals navigate complex tax challenges with confidence. Shamsey Oloko a seasoned tax defense attorney and founder of Thorgood Law in New York, the show provides expert insights into IRS audits, tax investigations, and compliance strategies. With practical advice and real-world examples, Thorgood Tax Talk empowers listeners to protect their finances and avoid costly tax mistakes.