New white paper by CPRS offers “3 Things to Know if Your Business Gets Audited”
Bellevue, WA (November 2025) – For businesses assessed by the state, or facing a Sales & Use Tax Audit, a new white paper by the tax audit experts at CPRS addresses three important considerations.
“Because CPRS has more than a century of in-house experience in state Departments of Revenue (DOR), we know their playbook and the sampling processes they use,” said Jeff Heyel, CMI, CPA, Vice President of Tax for CPRS. “This experience allows CPRS to provide superior Audit Representation and Audit Defense services to the world’s largest companies.”
CPRS reviews and evaluates all facets of a state auditor’s sample plan – from the selection of the sampling method to checking that the auditor’s projection calculations are accurate – to provide meaningful insights and recommendations to its clients. These recommendations help ensure that the projected tax results are representative, reasonable, and not overstated.
The new CPRS white paper, “3 Things to Know if Your Business Gets Audited,” condenses the myriad of information available when contemplating outside support to three important considerations for companies facing an audit:
- How State DORs Operate
- Sampling Methodologies
- Tax Team Experience
“The sampling method matters for numerous reasons. For example, in some states, credit errors will only be projected with a statistical sample,” Heyel said. “The sample plan can have a material impact on projected tax liabilities. Therefore, it is important to evaluate the sampling plan before it is finalized. CPRS intervenes, respectfully of course, to ensure the sample is representative of the entirety of taxable activities.”
Sampling Creates 92% Reduction in CPRS Audit Representation
As an example, one large airline had a $468,000 tax assessment after a state audit. A few years later, the airline, facing another audit, hired CPRS for Audit Representation. “Our team got involved in the sampling process early on and eventually created a 92% reduction in assessed taxes, compared to the previous audit,” Heyel said.
6-Figure Refund with CPRS Audit Defense
For companies that have already been audited, a CPRS Audit Defense Review can lead to significant reductions.
For an international software company, CPRS turned a $4,000 tax assessment into a 6-figure refund by looking at what the state auditor did not take into account. Using its experienced tax team, CPRS developed a defensible tax theory that created a nearly $300,000 refund.
Need a Second Opinion?
“If your business has been audited, CPRS will evaluate any preliminary assessment for free,” Heyel offered.
“At a minimum, we can put another set of experienced eyes on your assessment before you accept an audit outcome,” Heyel said. “And, if your business already accepted an audit, there is still a statutory window for us to review and reduce. Again, we will evaluate for free.”
This offer is especially important because the amount of state tax audits being done is rising. According to TaxValet, sales tax audit rates have quadrupled recently.
Whether you’re just receiving your audit notice or already in the thick of it, CPRS steps in as your advocate—managing auditor communications, gathering documentation, negotiating sample plans, and reducing your burden wherever possible.
Click here to download the white paper.
