The Department of Taxation’s purpose in conducting an audit is to verify that the correct amount of tax is being collected and remitted by the vendor. As a registered sales tax vendor, the taxpayer is required to keep accurate and detailed records of all sales and purchases made. When these detailed sales and purchase records are incomplete or inadequate, the Audit Division may resort to an audit methodology based upon audit estimates. The taxpayer has the heavy burden of proof to show clearly and convincingly that the estimated amount of tax is erroneous or that the estimated audit methodology does not reasonably reflect proposed taxes due. Understanding these audit standards places a great burden on the taxpayer during a Sales Tax Audit to minimize its tax liability. Our professional representation at all stages of the Sales Tax Audit process, but preferably at the onset of the Sales Tax Audit with the receipt of the Sales Tax Audit notice can lead the taxpayer to a resolution that reduces the taxpayer’s ultimate tax audit liability.