I received a sales tax audit notice for Alabama today. I found this odd, as it is a three year audit and we have only operated in the state for 6 months. In fact, all four of the audit sample months they chose had zero sales. I have never even heard of anyone being audited with this little history.
So, I call the auditor, and explain all of the above, expecting an answer like "oops, no point in proceeding." How naive I am. He says we have to proceed with this, and listed a pile of documents he has to see which will take me about 6 hours of my time to track down and Xerox. Included in this, in addition to all the revenue records, he wants to see every single invoice we paid in Alabama to make sure we didn't secreatly buy stuff out of state and avoid their use tax (the tax you are supposed to pay, ha ha, if you buy items out of state with no sales tax. You guys all file your use tax reports on Amazon purchases, right?)
But here is the part that really pissed me off. When I asked him why I was being audited after just 6 months, he said he knew the audit was senseless but his office is desperately trying to keep everyone employed during recent budget cuts so that no one would lose their job. Also he said is was good training for him. Great. I have to do 6 hours of extra work so that later I can pay higher state taxes to support more government workers. What a deal.