I have a client that has been hounded with NCDOR tax audits for about 5 years in a row now. I only prepared one of those years. A few days ago, she got a call from a lady claiming to be from the NCDOR sales tax division and was informed BY PHONE that she was under a sales tax audit for 3 years worth of returns. I'm thinking she needs something in writing about being under audit.

Also, this lady was asking all kinds of questions out of the realm of sales tax, such as store hours, etc. She told my client she expects all receipts for purchases, etc.... and all bank statements business and personal. The 2014 receipts have already been examined and approved by a NCDOR officer in a revenue audit. Providing 2015 and 2016 is no problem as I boxed them and labeled them as the taxes were prepared. However, the 2017 income tax return is not even due to be filed yet, so how can she expect that? Also, I'm thinking that is probably out of her realm of authority to ask for all of that.

Any suggestions?