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New Book From CCH Details Use Of Statistical Sampling In Sales And Use Tax Audits
(RIVERWOODS, ILL., July 12, 2002) – When a state audits a company’s
sales and use taxes, the stakes can be high and missteps can be
costly. When the state auditor wants to use statistical sampling in a
sales tax audit, everyone involved must take special care to avoid
statistical pitfalls that can lead to incorrect assessments. To help
all concerned make sure that statistical sampling is applied
correctly, CCH INCORPORATED (CCH), a leading provider of tax and
business law information and software, has published Statistical
Sampling in Sales and Use Tax Audits, by noted expert and author
Will Yancey, Ph.D. and CPA.
($75, 203 pages. To order, call CCH at 1-800-248-3248 or visit the CCH
Online Store at onlinestore.cch.com.)
Statistical sampling is a practical and logical way to conduct
audits when it is impractical to examine every single transaction, and
states have been increasingly relying on this audit technique,
according to John Logan, JD, senior tax analyst for CCH.
"Statistical sampling is replacing block sampling, in which an
audit would look at every transaction in a given time period. This
makes it imperative for business taxpayers and government agencies
alike to have a sound understanding of the statistical, accounting,
legal and information systems issues involved in this technique,"
Detailed, Critical Issues
From the scheduling of an audit to a potential appeal of the
results, taxpayers have decisions to make. The purpose of this volume
is to give taxpayers an understanding of the audit process and help
them make decisions that will lead to a positive outcome.
Author Yancey begins with an overview of the legal and accounting
environment for sales and use tax audits and lays the foundation for a
deeper understanding of the issues involved. He then takes the reader
through each step involved, such as population analysis and sample
planning, provides a practical overview of the techniques of
statistical evaluation and offers advice on negotiating with the state
over disputed transactions. A separate reference chapter includes
extensive bibliographies of tax audit sampling and sampling theory, as
well as software applications and publishers for data extraction and
population analysis and for statistical sample evaluation.
Yancey provides practical guidance on dealing with
computer-assisted audit techniques and checking data files before
sampling. Detailed but critical issues, such as which data files to
use, distinguishing between billing and delivery addresses to
determine nexus and identifying which date fields are determinative
are all addressed.
An especially useful feature is an extensive summary of relevant
law and administrative guidance on sampling for all states that impose
sales and use taxes. This state-by-state treatment cites relevant
statutes, regulations, rules, administrative law decisions and court
About the Author
Will Yancey – a CPA with a doctorate in accounting – consults,
writes and presents on audit sampling for businesses, government
agencies, law firms, consulting firms and professional organizations.
Yancey has made dozens of presentations on sampling to groups such as
the Council On State Taxation (COST), the Institute for Professionals
in Taxation (IPT), the Tax Executives Institute (TEI), the University
of Wisconsin—Milwaukee Multistate Tax Conference, the Hartman State
and Local Tax Forum at Vanderbilt University and tax conferences for
In 1999, he won the IPT Literary Award for his paper on sampling in
sales and use tax audits. His articles and correspondence were cited
or requested during the development of audit policy manuals of the
California State Board of Equalization, New York State Department of
Taxation & Finance, Tennessee Department of Revenue, Washington
Department of Revenue and others.
Availability and Pricing
For more information or to order the 203-page Statistical
Sampling in Sales and Use Tax Audits, contact CCH at
1-800-248-3248 or visit the CCH Online Store at onlinestore.cch.com.
Single copy price is $75 plus applicable tax, shipping and handling.
Quantity discounts and school adoption pricing are available.
About CCH INCORPORATED
CCH INCORPORATED, headquartered in Riverwoods, Ill., was
founded in 1913 and has served four generations of business
professionals and their clients. The company produces more than 700
electronic and print products for the tax, legal, securities,
insurance, human resources, health care and small business markets.
CCH is a wholly owned subsidiary of Wolters Kluwer U.S. The CCH web
site can be accessed at cch.com.
The CCH federal and state tax web site can be accessed at tax.cchgroup.com.
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