Alternative Compliance Procedures

What We Do

“Alternative reporting procedure” is an umbrella term covering many techniques to remit taxes. Included here are calculating and submitting tax to a jurisdiction without a written agreement, estimating post-audit period liabilities with prior audit results, and other methods.

Streamline can assist with the evaluation, production, negotiation, and implementation of alternative compliance procedures, including managed audits, compliance and exposure reviews, defense vs. contract auditors, alternative reporting procedures, and more. These procedures came to the forefront almost two decades ago when both the jurisdictions and the taxpayers began looking to increase efficiency and reduce compliance costs. Today, many jurisdictions have formalized these procedures by adopting legislation and regulations to refine these programs.

Due to decreasing budgets and resources, contract auditors are now a popular vehicle for taxing jurisdictions to increase audit-related tax revenues without raising headcount. Of course, special caution must be exercised to enact a confidentiality agreement with the state. Likewise, taxpayers should be skeptical of contingency fee-based auditors, or “bounty hunters.”

Alternative Compliance Procedures


Self-audit programs (the Texas Managed Audit) permit taxpayers to perform most typical auditor functions. Assisted responsibilities on your behalf would include creation of scope and work plan; data reconciliation; creation of audit schedules in exchange for the waiver of penalty or interest.

Managed compliance allows taxpayers to enter into a written agreement with a jurisdiction to report sales and use tax of purchase transactions according to a predetermined percentage. These types of agreements are usually limited to a specific account or group of accounts thus helping to reduce the administrative burden of reviewing every transaction in detail. Managed compliance agreements typically are available only for direct payment permit holders and are limited to expense purchases.

These methods are not for every situation. Our professionals help their clients determine which method is the most beneficial. Let us evaluate all options, refining the required techniques, negotiations, and procedural implementations.


Contact Us Today


For more information regarding our alternative compliance procedures services, please contact us at (972) 838-1914.