Boulder, Colo. – September 15, 2026 -- State sales tax audits drag on for an average of 223 days and can stretch as long as 682 days, according to internal data released by tax compliance firm TaxValet, which has guided 38 clients through such audits.
TaxValet has managed $458,492 in historical tax exposure accumulated by clients before they joined the firm
Defending a single audit consumes more than 20 hours of expert support, TaxValet reported. The firm noted that 45 current clients switched directly from popular sales tax software providers after those tools failed to close compliance gaps.
Unregistered businesses face audits with no statute of limitations protection
Sales tax exposure typically originates from missed nexus thresholds, incorrect product tax codes, missing exemption certificates, or unremitted use tax. Auditors calculate an error rate from these gaps and apply it across a standard three- to four-year lookback period. However, businesses that never registered in a state face no statute of limitations start date, meaning auditors can legally examine records back to the exact date nexus was first triggered.
TaxValet cut assessed penalties and interest by 48.9% for clients with pre-existing liabilities
For clients carrying historical exposure from before they engaged TaxValet, the firm reported reducing assessed penalties and interest by nearly half. TaxValet stated that state auditors examining its active clients' books have found nothing to penalize due to consistent record-keeping and filing accuracy. The firm also covers the full cost of any liability caused by its own errors, a guarantee that to date has cost the company $0.
TaxValet positions the "no change" audit outcome -- where a state assesses zero dollars due -- as the benchmark result achievable through proactive compliance management rather than reactive audit defense.