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Audit Protection

This article applies to:Avalara AvaTax
This article applies to:Avalara Returns
This article applies to:Avalara CertCapture

There are no guarantees that you won't get audited and as the saying goes, the best offense is a good defense. We've gathered resources for specific tasks you should complete each month to help you remain sales tax compliant.For each section below, there are videos, user guides, and recorded webinars so you can choose how you want to learn.

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Overview

It is a best practice to be aware of the common risks of sales tax compliance and what could potentially trigger an audit. These videos help you learn the basics

PLAY-BLUE-30px.png Common risks of sales tax compliance
PLAY-BLUE-30px.png Common triggers for sales tax compliance risks
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Regular reconciliation

It is a best practice to reconcileHoverTT.png your transactional data each month to catch any discrepancies between your accounting system and AvaTax. Learn the reports you need to run for your different types of transactionsHoverTT.png.

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Run a reconcile report

PLAY-BLUE-30px.png Reports and reconciliation overview
GuidesNL-blue-xs.png Manage the liability worksheet
GuidesNL-blue-xs.png Run a liability worksheet export report
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Stay up to date on tax law changes

On the first day of every month, we perform a maintenance update to our service based on tax law changes. All changes are summarized in the AvaTax maintenance update guide. Find the latest maintenance updates for nexus jurisdictions, rates, boundaries, reporting levels, and tax rules.

GuidesNL-blue-xs.png AvaTax maintenance updates
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Collect and calculate tax accurately

This video provides an explanation about the basics of sales tax. In order to calculate sales tax correctly, it's great to have a foundation in sales tax compliance. Here is a video course to help you understand the basics:

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Making sense of sales tax

GuidesNL-blue-xs.png Avalara integrates with hundreds of accounting systems. Learn how to calculate tax with your specific accounting system.
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File returns

It is important to file your returns and remit your tax liabilities according to each state's requirements. Here are some resources to help you maintain sales tax compliance.

GuidesNL-blue-xs.png If you do not use Returns, run a Tax Return Report
  If you use Returns to file tax returns on your behalf, here are some videos and user guide pages to help you out with the process:
PLAY-BLUE-30px.png Returns filing timeline
GuidesNL-blue-xs.png Use the filing calendar
PLAY-BLUE-30px.png What is location-based filing?
DailyWebinar-Blue-xs.png Get started with Returns webinar
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Manage exemption certificates

In order to remain sales tax compliant, you need to collect and store exemption certificatesHoverTT.png. There are a number of different ways to exempt customers from sales tax with AvaTax, but CertCapture is the only end-to-end system that limits your audit exposure.

PLAY-BLUE-30px.png What are exemptions?
PLAY-BLUE-30px.png What are exposures and exposure zones?
GuidesNL-blue-xs.png Exempt customers from sales tax
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Resolve tax notices

A tax noticeHoverTT.png is a notification from a tax jurisdiction informing a tax account holder of a requirement, adjustment, or error involving their tax account. If you use Returns, send all notices to avataxreturns@avalara.com and we'll take care of them for you. Here is a user guide page that shows you how to track the status of a notice:

GuidesNL-blue-xs.png Manage tax notices