<slestaxhelp2005[at]yahoo.com> wrote:

- quote -

IRS can obtain them under typical Fed-State exchange
agreements. However, sales information provided to State is
as self-serving as what's reported on federal returns. In
an audit of other than a nonfiler, IRS use of sales figures
on state tax returns can have some serious litigation
hazards, so if underreporting is suspected, there's better
and more sustainable ways to skin the cat.

Fred F.

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slestaxhelp2005[at]yahoo.com wrote:

- quote -

Firstly, federal rarely checks with state sales tax people,
except in rare circumstances.

For the rest of your question, you probably need some
local, competent tax help.

see www.naea.org for a referral.

Or I could email you Patti's address.

ChEAr$$$$,
Harlan Lunsford, EA n LA]
13 Apr 2005
ONLY two days more!

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Here's a good question. A business reports it's collected
sales tax to the state every month or quarter. The business
then does their federal income tax. Does the IRS check with
the state to see how much was reported in state sales tax.
Now the reason, purchased an established business and used
the companys already setup of quickbooks. Appears to have 2
sales tax accounts and the tax was underestimated to the
state. I know I can file an amended to the state, but is it
checked? It's in Texas.

thanks,

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