Department of Taxation and Finance

Sales Tax Enforcement (Follow-Up Review)

The Department of Taxation and Finance conducts audits to determine whether vendors have transmitted their sales tax collections to the State as required by law. In our prior audit report 91-S-11, we found that, when untransmitted sales taxes were identified by Department audits, the amounts due the State were not transmitted to the State in a timely manner. We also identified weaknesses in Department procedures for following up on vendors who were not registered with the Department. In our follow-up review, we found that, while some of our prior audit recommendations have been implemented, others have not been implemented. As a result of actions taken to implement recommendations relating to unregistered vendors, the Department began a pilot program that produced more than $30 million in new revenue during its first year.

For a complete copy of Report 97-F-40 click here.