Texas Sales Tax Audit Representation

 in Tyler, TX

If you’ve received a letter from the Texas Comptroller of Public Accounts, you don’t have to face it alone. At Martinez CPA, we provide experienced Texas sales tax audit representation in Tyler, TX, helping small businesses across East Texas prepare, respond, and resolve audits professionally. Our bilingual CPA team assists retailers, contractors, restaurants, and service providers from Tyler to Whitehouse, Bullard, and Lindale, ensuring your records are organized, your rights are protected, and your audit outcome is as fair as possible.

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Stay Calm—There’s a Clear Plan for Sales Tax Audits

Sales tax audits often begin with a notice and a request for sales records, exemption certificates, and purchase invoices. We step in immediately to review the scope of the audit, identify risk areas, and open communication with the Comptroller’s auditor. Our goal is simple: make the process manageable, reduce unnecessary exposure, and help you get through the audit without disrupting your business.

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What Auditors Look For—and How We Prepare

The Comptroller focuses on accurate reporting, exemption documentation, and use tax compliance. Martinez CPA helps you gather the right records and address key audit areas before the fieldwork begins.

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Books & POS Records:

Point-of-sale (POS) reports, daily summaries, bank deposits, and general ledger tie-outs.

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Exempt Sales Proof:

Properly completed resale and exempt-use certificates (Form 01-339) with valid permit numbers.

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Use Tax Exposure:

 Purchases made without Texas sales tax (especially equipment, tools, and online buys) that may require use tax accrual.

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LABOR & MATERIALS:

Clarifying which services are taxable versus exempt—critical for contractors, HVAC, janitorial, and repair businesses.

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Delivery/Shipping Charges:

Ensuring invoices distinguish taxable vs. nontaxable shipping.

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Industry Issues:

Restaurant gratuities, construction materials, manufacturing exemptions, or retail markdowns.

Our Texas Sales Tax Audit Process

Every audit follows a pattern, but each business’s situation is unique. Here’s how we manage yours from start to finish:

  1. Notice Review & Risk Assessment: We evaluate the letter, define the audit scope, and identify key exposure areas.
  2. Documentation & Organization: We reconcile taxable sales to bank deposits and POS data, verify certificates, and confirm purchase records.
  3. Auditor Communication: We handle all correspondence with the Comptroller, request extensions if needed, and attend meetings or site visits.
  4. Testing & Sampling Review: If the auditor uses a sampling method, we check for accuracy, remove anomalies, and challenge unsupported estimates.
  5. Negotiation & Resolution: We clarify exemptions, propose adjustments, and request penalty relief or payment plans if an assessment remains.

Throughout the audit, Martinez CPA provides regular updates and practical guidance—so you always know where things stand.

Representation Beyond the Exam Room

Once the audit is complete, our work continues. We help you correct the underlying issues that led to the audit—so it doesn’t happen again.

That includes:

  • Setting up sales tax filing schedules (monthly, quarterly, or annual)
  • Reviewing invoice templates and POS settings for tax accuracy
  • Implementing certificate management systems
  • Training your team on taxable vs. exempt transactions
  • Establishing a simple use tax review before each month-end close

We’ll also represent you in follow-up negotiations, appeals, or settlements if the Comptroller issues additional assessments.

How to Prepare if You’ve Been Contacted by the Texas Comptroller

If you’ve received a notice, take these immediate steps before calling the auditor:

  1. Read the letter carefully — note the response date and requested records.
  2. Gather key documents — sales reports, invoices, exemption certificates, purchase records, and tax returns.
  3. Contact Martinez CPA — we’ll file a Power of Attorney (Form 01-137) so the auditor communicates with us, not you.

Our team moves quickly to pause deadlines, review your records, and prepare your response. For businesses in Tyler, Whitehouse, Bullard, and throughout Smith County, professional representation can make the difference between a routine exam and a costly assessment.