Tobacco Excise Tax Audit Help for Cigarette and Tobacco Sellers (Distributors, Importers, Wholesalers, Retailers)
Whether your company has just been notified of a cigarette and/or tobacco excise tax audit, is in the middle of one, or is in need of excise tax compliance services, our expert specialists can help.
Are you a distributor, importer, wholesaler or retailer of cigarettes and/or tobacco products who has just received an audit notice? Or perhaps you are already in the middle of an audit and the auditor is indicating that you owe additional tax on your transactions? Regardless of the situation, McClellan Davis has the cigarette and tobacco tax expertise to help.
Due to complex federal and state tax laws that pertain to cigarette and tobacco transactions, audits of licensed sellers often create unique problems and issues that do not arise in other areas of tax law. Our specialists are experts in navigating and addressing tax liabilities, distribution agreements, exemptions and reporting requirements associated with cigarette and tobacco sellers. Our firm has successfully managed and defended hundreds of sales, use and excise tax audits. See our results. We have also worked closely with our clients to develop and implement sound internal accounting, documentation and reporting controls to help ensure that your business remains in compliance.
Our highly qualified specialists will help you prepare for an impending audit while developing a strategy that fits your specific operation. We’ll work closely with the auditor on your behalf and handle all of the correspondence with the taxing agency, allowing your business to operate without significant interruption. As the audit progresses, your assigned tax specialist will monitor the auditor’s working papers, present rebuttals and propose adjustments as necessary. We will help develop sound controls for your company’s reporting obligations moving forward and we will also review your operations in search of tax mitigating and refund opportunities. Finally, if necessary, we can appeal your case and represent you through all of the administrative remedies available to you under the law. Because we have attorneys on staff, we can also provide litigation support if proceeding to court is your best option.
Industry: Cigarette & Tobacco Distributor
Procedural Summary: Managed Audit
This case involved a tobacco distributor located in Southern California. We managed the tobacco excise tax audit from the onset, fighting more than three years on behalf of our client to overcome the audit staff’s numerous inaccurate factual assumptions and incorrect legal applications. In addition to dramatically reducing the asserted liability, we helped our client develop sound internal accounting and record retention controls to help ensure that it would accurately report and support its transactions going forward.