Audit FAQs
Are there differences in audits of sellers that use a CSP and those that don't?
If you contract with a CSP and you are a “CSP-compensated seller,” the states will generally contact the CSP for any audits or questions concerning your returns and tax payments. If additional documentation is required, the CSP will contact you for that documentation. The purpose of the Streamlined Agreement is to reduce the burden of tax compliance for you, which includes reducing the number of auditors at your business.
If you use a CAS, the state will contact you directly to conduct the audit.
Will a seller that contracts with a CSP be audited by all states?
No, any audits would be performed through the CSP. The individual seller would not be contacted by any individual state. The purpose of the SSUTA is to reduce the burden of tax compliance for sellers. Streamlined’s goals are to ensure uniformity across states in registration, sourcing of sales, exemption administration and tax return filing. One of the intentions of Streamlined is to limit the intrusion of auditors on sellers.
What is personally identifiable information?
Personally identifiable information is information that identifies who you are. With very limited exceptions, a Certified Service Provider (CSP) performs its tax calculation, remittance, and reporting functions without retaining the identity of the consumers. The CSP must certify that personally identifiable information is only retained and used to the extent necessary to document sales to exempt purchasers and to identify proper taxing jurisdictions.
