Ok guys this was a day in itself. Audit going on, typical workday, staff, pcs, equipment problems then I get a call to come over to the office. you need to take the boss to the MD or emergency room! We decide to go to MD since we hate ER rooms. He tests and sends us to ER because of amount of pain. What's the problem? kidney stone. Now after being admitted and getting into a room 2.5 to 3 hrs later they (hospital staff) finally start the IV and pain meds. I'm back here and she is finally resting ok. Oh by the way I work for my wife.
Yes the auditor found 4 questions and we've already resolved 2 and 2 we're in error. Yes I could be upset but out of the hundreds maybe thousands of invoices / receipts only having 2 mistakes, I'm ok with that. (wish it were zero of course) Don't have a final figure but I believe they're not going crazy with the penalties, we'll see. Also remember the auditor is also on a fishing trip to look into all of the vendors also.
(This is a free trip for the states to go thru everyones' books. Find something and the go into the next guys books and do the same thing.) This is not a new law "use tax" it has been on the books here since the mid 60's per auditor. Auditor seems to be very decent (lives in farm country, takes info and asks for supporting docs, have it no problem, don't then there's the problem.)
In our case it wasn't a case of "do you feel lucky" it was an oversight by both CPA and myself, we had already disscused the purchase and decided to pay use tax. Just didn't, and even in the auditors comment he stated how it could be interpreted as not needed to be taxed because of its usage.
2 fold problem it has other uses and secondly is the $ amount. They may let $5.00 go but they want the big sales.
Just thoughts on my day, hope everyone has had a better one, though mine really was ok could be a lot worse.
chuck
Keep all receipts, call and ask CPA ?'s and get answers