Kentucky Audit Representation
Steve will represent you in all phases of the audit process including interaction with the auditor and the audit supervisor, preparation of the Kentucky Protest and Supporting Statement, negotiations with the Division of Protest Resolution, protest conference, preparation of Final Settlement, Request for Final Ruling Letter and litigation at the Kentucky Board of Tax Appeals.
Kentucky Reverse Audits and Refunds
A reverse audit is an “audit of the auditor.” As part of the Kentucky Audit Representation process a reverse audit is always performed. Essentially, all documentation reviewed by the auditor is also reviewed, checking for mistakes by the auditor when he/she prepares their audit assessment, but also looking for overpayments made by the taxpayer when they prepared their original tax returns.
During the audit process when overpayments made on the original tax return exceed any audit assessments the taxpayer should receive a refund. Steve will identify these refunds.
Anytime an audit assessment has been paid within the last four years (two years for Kentucky tangible personal property tax) a reverse audit can be performed on the assessed audit period and to the extent Kentucky tax, interest and penalty was overpaid on the assessment a refund can be obtained. Steve will identify these refunds.
The Kentucky Department of Revenue will not directly refund sales tax paid by you on invoices paid to vendors. These refunds must be obtained directly by your vendor and then remitted by your vendor to you. Steve will oversee and coordinate this cumbersome process to obtain vendor refunds identified during a reverse audit.
Kentucky Severance Tax Transportation Expense Review
Steve will review the cost you capture in computing your Kentucky transportation expense deduction for the computation of Kentucky severance tax.
Evaluation of Procedures
Many taxpayers do not have procedures in place to determine if transactions are taxable and often “give it their best guess.” Steve will evaluate if you have been paying the correct amount of tax and recommend changes (if necessary) for paying taxes in the future.
Kentucky Tax Planning
Steve will evaluate your entity structure and transactions between related entities to minimize your Kentucky tax liability.
Steve will act as a resource to tax professionals when they are researching Kentucky tax issues.