While the number of IRS audits has been declining for years, state tax audits are rising rapidly in an effort to cover the COVID-19 revenue shortfall. While you may think your practice isn’t liable for sales and use taxes, that’s likely a costly mistake. Here’s what you need to know.

State governments face an estimated budget shortfall of $434 billion from 2020-2022, as a result of declining tax revenue and elevated unemployment claims arising from the COVID-19 pandemic. While the federal government continues to print money to finance its huge budget deficits, states can’t do the same since most are required to operate within a balanced budget. Accordingly, most states are ramping up...