Sales tax audits are conducted by the Illinois Department of Revenue to ensure businesses comply with the state’s sales tax laws and regulations.

While the specific triggers for an audit may vary, there are several common factors that can increase the likelihood of being selected for a sales tax audit in Illinois:

• Discrepancies in Sales Tax Returns: If your sales tax returns show inconsistencies or irregularities, such as large fluctuations in reported sales, significant changes in tax liability, or discrepancies compared to industry averages, it may raise red flags and trigger an audit.
• Unreported Sales or Underpayment of Taxes: Failing to report all taxable sales or underpaying sales tax can draw the attention of tax authorities. They may compare your reported sales to other sources of information, such as your income tax returns, industry benchmarks, third-party data, or information obtained from other businesses.
• Prior Audit Issues: If you have previously been audited and had unresolved issues or outstanding tax liabilities, it increases the chances of being audited again.
• Industry Specific Risk Factors: Certain industries, such as construction, retail, and hospitality, are considered higher risk for sales tax non-compliance due to cash transactions, complex supply chains, or specific industry regulations.

If you’ve been selected for a sales tax audit, our experienced sales tax attorneys can help you get safely to the other side. Don’t wait—give us a call today at (847) 580-1279 to schedule your free consultation!

On average, an Illinois sales tax audit can last anywhere from a few weeks to several months. The duration of a sales tax audit in Illinois can vary widely depending on several factors, including the complexity of your business operations, the volume of transactions, and the cooperation of your company during the audit process.

During the audit, the Illinois Department of Revenue will typically request various documents and information to verify your sales tax returns and ensure compliance with the tax laws. The state may request documents such as:

• Sales records
• Purchase invoices
• Tax exemption certificates
• General ledger
• Income tax returns
• Fixed asset reports

It’s important to note that the audit process can be time-consuming and may require significant effort from your company’s personnel to gather the requested information and respond to the auditor’s inquiries promptly.

This is where the knowledge of a seasoned sales tax lawyer can be invaluable, as they can guide you through the process, help organize your records, and communicate with the auditor on your behalf.

Have questions about your Illinois sales tax audit? Contact Gordon Law Group for a free consultation!

Once the sales tax audit is completed, the auditor will present their findings, which may include adjustments to your reported sales, taxes owed, penalties, and interest. At this stage, you have the right to dispute any discrepancies or disagree with the auditor’s conclusions.

If you believe the audit results are incorrect or unfair, it’s important to seek professional legal representation to advocate for you and protect your rights.

Gordon Law has a team of experienced sales tax attorneys who can carefully review the audit findings, identify potential errors or misinterpretations, and develop a robust defense strategy.

In some cases, it may be possible to negotiate a settlement or installment agreement with the Illinois Department of Revenue to resolve any outstanding tax liabilities. Your attorney can help you explore these options and negotiate on your behalf to minimize the financial impact on your business.

If you want to dispute the results of an Illinois sales tax audit, give our attorneys a call today at (847) 580-1279. We have years of experience helping our clients lower their tax bills after an audit!

While facing a sales tax audit can be stressful, proper preparation can significantly improve your chances of a successful outcome. Here are some essential steps to help you prepare for an Illinois sales tax audit:

• Review Your Sales Tax Returns: Conduct an internal review of your sales tax returns to identify any potential discrepancies or errors. Make sure all sales and taxable transactions are accurately reported.
• Organize Your Records: Maintain comprehensive and well-organized records of your sales, purchases, and related financial transactions. Ensure you have supporting documentation readily available to substantiate your reported figures.
• Seek Professional Guidance: Engage the services of a qualified sales tax lawyer, like the attorneys at Gordon Law, who have defended dozens of sales tax audits. They can provide you with valuable guidance, negotiate with the Illinois Department of Revenue, and protect your rights throughout the audit process.

The typical cost to fight an Illinois sales tax audit using professional representation is between $10,000 and $20,000 per tax year; the cost depends on the scope of the examination and the complexity of your tax situation.

For a personalized quote, schedule a free consultation with a sales tax lawyer! You can contact Gordon Law Group online or call us at (847) 580-1279.