Tax Audit & Controversy
West Virginia Sales & Use Tax Audit Representation
A West Virginia sales or use tax audit can put substantial money at stake for a business. Lauffer Law represents taxpayers through audits, proposed assessments, administrative appeals, and tax disputes—combining legal advocacy with the financial perspective of a Certified Public Accountant.
Sales & Use Tax Audits
An Audit Is More Than an Accounting Exercise.
A sales and use tax audit may begin with requests for invoices, purchase records, sales records, exemption certificates, general ledgers, or other financial information. But the ultimate dispute may involve much more than whether the numbers add up.
Questions can arise concerning whether a transaction was taxable in the first place, whether an exemption applies, whether tax was previously paid, how transactions were characterized, whether the auditor’s methodology accurately reflects the business’s activity, and whether the resulting assessment is legally supported.
That is where having an advisor who understands both law and accounting can be particularly valuable.
Tax audits often sit at the intersection of accounting records, business operations, statutory interpretation, and legal advocacy.
Attorney
Legal analysis, advocacy, administrative appeals, and representation when an assessment is disputed.
CPA
Understanding of financial records, accounting issues, transactions, and the numbers underlying the audit.
How We Can Help
Representation Throughout the Tax Audit & Dispute Process
The best time to evaluate a tax dispute is often before an assessment becomes final. Lauffer Law can become involved at different stages depending upon where you are in the process.
During the Audit
Review audit requests, organize the issues, communicate with the Tax Division, evaluate records, and identify legal or factual issues before a proposed liability becomes final.
Audit Findings & Assessments
Analyze the auditor’s findings and proposed liability, including the underlying transactions, tax treatment, exemptions, documentation, penalties, and other disputed items.
Administrative Appeals
Prepare and pursue challenges to disputed assessments before the West Virginia Office of Tax Appeals, including development of the factual and legal basis for the taxpayer’s position.
Tax Litigation
Evaluate and pursue further judicial review when an administrative tax dispute cannot be resolved and additional appellate review is appropriate.
Received a Notice of Assessment?
Deadlines Matter.
A taxpayer who disagrees with a West Virginia tax assessment generally has a limited period to challenge it. Waiting too long can substantially change—or eliminate—the available options.
West Virginia law generally provides 60 days after receipt of a Notice of Assessment to file a petition with the West Virginia Office of Tax Appeals. If an assessment is not timely challenged, it may become final and conclusive.
Issues We Evaluate
The Assessment Is Not Always the End of the Analysis.
Every audit depends upon the facts, records, transactions, and applicable law. Depending upon the matter, a sales and use tax dispute may involve questions such as:
- Whether the transaction or purchase was subject to West Virginia sales or use tax
- Whether a statutory exemption or exclusion applies
- Whether tax was previously paid to a vendor or another jurisdiction
- Whether available records adequately establish payment or tax treatment
- Whether exemption certificates or other supporting documentation are sufficient
- Whether the auditor properly characterized particular purchases or transactions
- Whether sampling, projections, or other audit methodologies accurately reflect the taxpayer’s activity
- Whether penalties or additions to tax are appropriate
- Whether the assessment is consistent with West Virginia statutes, regulations, and applicable authority
The appropriate arguments and evidence depend upon the particular audit. Lauffer Law reviews the underlying records and applicable law rather than assuming the auditor’s initial treatment of a transaction is necessarily the final answer.
The Appeal Process
Challenging a West Virginia Tax Assessment
When an audit results in a disputed assessment, West Virginia provides an administrative process for challenging the Tax Commissioner’s determination.
01
Notice of Assessment
The Tax Division issues its assessment following the audit. The notice and supporting audit findings should be reviewed promptly.
02
Petition for Appeal
A timely petition can challenge some or all of the assessment before the West Virginia Office of Tax Appeals.
03
Administrative Proceeding
The taxpayer can present the factual and legal basis for challenging the assessment in the administrative proceeding.
04
Judicial Review
When appropriate, a final decision of the Office of Tax Appeals may be appealed to the West Virginia Intermediate Court of Appeals.
Attorney + CPA
Legal Representation With a Financial Perspective
Tax disputes are unusual legal matters because the evidence is often found in accounting records, invoices, purchase histories, tax returns, contracts, and the way a business actually operates.
Zachary Lauffer is both a West Virginia attorney and Certified Public Accountant. That combined background allows Lauffer Law to evaluate both the legal arguments and the financial information underlying an audit.
The goal is not simply to respond to the auditor. It is to understand how the assessment was calculated, determine which items should be challenged, identify the evidence supporting the taxpayer’s position, and develop a strategy for resolving the dispute.
Review the numbers.
Understand how the proposed liability was calculated.
Analyze the law.
Determine whether the transactions were treated correctly under West Virginia tax law.
Build the record.
Identify the documentation, testimony, and legal authority supporting the taxpayer’s position.
Advocate.
Deal with the taxing authority and pursue the appropriate administrative or judicial remedy.
Client Experience
Representation When an Audit Becomes Overwhelming
“When we got a notice that we were being audited, Zach took care of the entire process. Having him work with the state on our behalf made an overwhelming process seamless.”
Frequently Asked Questions
West Virginia Sales Tax Audit FAQs
What should I do if my business receives a sales tax audit notice?
Take the notice seriously and identify what information is being requested before producing records. An audit can involve both factual and legal issues, and decisions made early in the process may affect how the matter develops.
Can an attorney deal with the West Virginia Tax Division for me?
Yes. A taxpayer may obtain professional representation during a tax dispute. Lauffer Law can communicate with the taxing authority, evaluate the audit issues, assist with responses, and represent the taxpayer in appropriate administrative and judicial proceedings.
What if I disagree with a West Virginia Notice of Assessment?
A taxpayer generally may challenge an assessment by filing a timely petition with the West Virginia Office of Tax Appeals. Because the applicable filing period can be short, the notice should be reviewed promptly.
How long do I have to appeal a West Virginia tax assessment?
West Virginia law generally provides 60 days after receipt of a Notice of Assessment to file a petition with the Office of Tax Appeals, although the applicable deadline should always be confirmed based upon the particular notice and circumstances.
What if I do not have every receipt requested during the audit?
Missing documentation does not necessarily answer the ultimate legal question of whether a particular transaction is taxable or whether an assessment is correct. The available records, nature of the transaction, applicable law, and other evidence should be evaluated based upon the facts of the particular audit.
Can a tax assessment be appealed beyond the Office of Tax Appeals?
Yes. Depending upon the circumstances, a party aggrieved by a final decision of the West Virginia Office of Tax Appeals may seek judicial review in the West Virginia Intermediate Court of Appeals.
West Virginia Tax Audit Representation
You Don’t Have to Handle the Audit Alone.
Whether your business has just received an audit notice, is responding to an auditor’s requests, or has already received a disputed assessment, Lauffer Law can help you understand the issues, evaluate your options, and determine the appropriate next step.
Lauffer Law Firm PLLC
Hurricane, West Virginia
Serving businesses throughout West Virginia
304-550-7436