We offer comprehensive services ranging from sales and use tax training, to our specialty of defending and protecting the interests of businesses during sales tax audits.

Case Studies | Sales Tax

Constructing a Sound Sales Tax Defense

Click the Case Study above to view

Davis & Davis LLC constructs a sales tax defense to resolve an audit that lingered over 12-months

RMI Construction Inc. is a commercial and residential marble contractor based in Irving, TX which serves the DFW metroplex area. Annual sales average of $1,500,000 over the 4 years of the audit period. The company’s clientele includes restaurants, supermarket chains, gas station outlets, and residences. The company was selected for a routine Texas sales/use tax audit and chose their CPA firm to handle the audit.

Challenges

  • RMI had been accessed more than $500,000 including penalties and interest during the Texas sales tax audit.
  • The taxpayer CPA engaged Davis & Davis to represent RMI and to effectively defend them during audit and redetermination phase of the sales tax audit.
  • The auditor was not sympathetic when asked to give more time after the audit had gone on for a year prior to Davis & Davis being engaged to assist RMI with the outstanding audit issues.