Get Ready for Tax Season 2024! Filing Begins January 29th

Reverse income Tax Audit

Significance of Reverse Income Tax Audit

A Reverse Income Tax Audit is sometimes commonly known simply as, a ‘Reverse Audit’. It can help you immensely in maximizing tax exemptions, as well as incentives. A Reverse Audit is quite similar to a Taxing Jurisdiction’s Audit.

However, its main purpose is the identification and recovery of tax overpayments. These payments could have been remitted to the suppliers, or they could have been paid directly to a Taxing Authority.

A Reverse Income Tax Audit is specifically designed to identify and assess for tax underpayments.

Internal Audits do not always catch such costly Tax Mistakes. Mostly because, this type of audit is designed to focus on corporate policies, procedures, and budgets of a company. A Reverse Audit combs through thousands to millions of transactions of a company to catch some tax mistakes. It is extremely detailed and gives you a very clear picture of the financial position of your company.

Note: Get Access to the Best Reverse Income Tax Audit Services Near Me.

The majority of small to mid-sized companies do not have the resources to establish an in-house tax department. Therefore, they cannot examine all transactions. If there is a turnover in accounts payable, or a change of vendors, it can create problems. It is highly recommended that such companies outsource their tax services to Professional Tax Specialists.

Reinforce Your Tax Position & Recover Your Overpaid State Income Taxes

Every company carries its client’s best interests at heart. However, it can become very difficult for some companies to ensure proper tax compliance across multiple States and Jurisdictions. Process errors left uncorrected can build up over months, or even years. They can affect cash flow and financial statements. Common exemplification of these errors comprises of;

  • Failure to take available credits or deductions.
  • Invalid tax rate or apportionment factor calculation based on special industry requirements.
  • Tax returns filed without a nexus needs and/or imprecise net operating loss treatment.

There have been cases when these errors can expose opportunities for business tax recovery. Whereas, other times, they may reveal your business to audits and penalties. In all cases, an inverse income tax audit can shine light on the process improvements. It may improve the all-inclusive precision of your state income tax compliance function. It may also make cash tax and effective tax rate savings.

The Best Reverse Income Tax Audit Services in Texas

SG INC CPA is one the most competent and popular tax and accounting firms. We can offer you the Best Reverse Income Tax Audit Services in Texas. We can assist in minimizing your tax deficit and give your income a boost.

In our expertise, audits that emphasis on state income tax recovery are very beneficial to specific companies. Especially the companies with any of the following;

  • Large state income or franchise tax liabilities
  • Recent participation in a disposition, merger or other transaction
  • Recent changes in business model or locations
  • Frequent changes in tax personnel or leadership turnover
  • Current or recent state income tax audit


The state is only tasked with identifying underpayments during an audit. It is not required to notify you of overpayment. By conducting a Reverse Income Tax Audit, companies may be able to reclaim overpaid tax. The resulting refunds might even be able to help offset any liabilities assessed by the state. Our Reverse Income Tax Audit Services are economical, efficient, and orderly, requiring minimal time. Access these wonderful services to increase the efficiency and profit pool of your company.

Get Quote

We can provide excellent Audit Defense and Support Services. We aim to reduce your organization’s liabilities and show it in the best light possible.