Peak SBC, LLC  

 


State Tax Defense

Our company specializes in assisting clients with serious state tax problems.  We have personnel available who are former criminal investigators for a state revenue agency.  Unfortunately, state compliance enforcement is less understood than federal tax enforcement and, more often than you would think, businesses find themselves in serious trouble before they fully understand what is going on.  If you are approached by a state tax authority and there is any indication that the inquiry might be in connection with a criminal investigation, you should not consent to be interviewed without seeking advice and counsel.  There are indications that an inquiry might be the beginning of a criminal investigation rather than a simple audit and it is vital that you understand the signs.

Sales tax issues are particularly troublesome.  With respect to sales tax, it is not tax evasion that is the issue.  Businesses collect sales tax as an agent of the state.  Failure to pay over all of the sales taxes collected can be prosecuted as theft of state funds, not tax evasion.  In most jurisdications this charge is a felony.  When faced with explaining to a state tax agency why all of the sales tax funds were not remitted to the state, it is quite common to offer excuses or rationalizations, such as a business downturn or other problem that caused the business owner to "borrow" the funds "temporarily."  The owner will assert that there was no intention to keep the money.  Owners who offer up this excuse to the tax authorities must understand that they have essentially confessed to the commission of a crime!  Again, do not face the tax authorities without proper advice and counsel.  We can assist you by helping you evaluate any pending interaction and in finding an attorney and/or CPA if required.

 


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