MN DOR is Targeting Restaurants with ‘Test Sales’ Approach

The MN DOR is conducting restaurant sales-tax audits using a ‘test sale’ approach.  Prior to the civil audit, the MN DOR sends in its agents as covert purchasers, and then, without disclosing the covert purchases to the taxpayer, the MN DOR demands detailed POS system data.  If the covert purchases are not in the POS system data, for whatever reason, criminal charges can follow for the taxpayer.