Hospitality tax & audit defense
Hotel audit exposure spans four tax lines at once. We address each one.
Get a professional read on where your property stands before a notice forces the question. We review your exposure across sales tax, occupancy, and asset classification, and tell you what an exam would likely surface.
via Google
“Dimov Tax showed remarkable professionalism, dedication, and attention to detail throughout the entire audit process. Despite a very tight deadline on our end, they managed to deliver the completed audit (US GAAP) in due time, ensuring a seamless and efficient experience for our organization. Their efforts have made a significant impact on our company, and we eagerly anticipate continuing our partnership.”
Marina Alexandra Ion
Where Hotel Audit Exposure Comes From
We work with hotel owners across all 50 states, and the call rarely starts with a known tax problem. It starts with an audit notice, a financing review that surfaces issues the owner did not know were there, or a sale that stalls because the books cannot support the asking price.
A hotel sits at the intersection of income tax, sales tax, state occupancy rules, and federal asset classification, and any one of those lines can produce a multi-year assessment. Most operators are running a property, not monitoring each tax type for documentation gaps, so the exposure builds in the background. Audit preparation matters most before the notice arrives; once the window opens, the options narrow.
What we cover
What our hotel audit services cover
Sales Tax Compliance
Occupancy tax, extended-stay exemptions, and ancillary fee classification.
Federal Income Tax Representation
Support for IRS exams involving hotel property.
Cost Segregation Defense
Asset classification with a supporting study built to hold up under review.
Audit Readiness Assessment
Preparation for financing, sale, or regulatory review.
Hotel Accounting Review
Clean-up and ongoing compliance monitoring.
Where exposure builds
The areas where hotel exposure builds
Extended-Stay Exemptions
Duration alone does not make long-stay revenue exempt. The exemption depends on an enforceable written lease with a notice-to-vacate provision. Without it, the revenue can be treated as fully taxable.
Tax-Exempt Guests
An exemption holds only with a current, valid certificate on file and payment from the organization's own funds. Informal handling is one of the most reliable findings in a hospitality sales tax exam.
Fee Classification
Mandatory fees, optional add-ons, and hotel-paid contractor fees are taxed differently, and the folio language controls the treatment. Getting the structure right before an exam costs nothing; arguing it afterward costs more.
Cost Segregation
Hotel asset classification rests on long-settled Tax Court precedent and current IRS guidance. A weak study invites both a tax adjustment and accuracy-related penalties on top of it.
Talk to a hotel audit CPA
If any of these areas are unaddressed, or you simply want a read before someone forces the question, reach out.
We will tell you where your property stands and what to fix first, in plain terms. No obligation, handled by a professional.
Who a hotel audit is for
A good fit if you:
- Have received an audit notice, or expect one.
- Are preparing the property for financing or a sale.
- Run extended-stay or high exempt-guest volume and want the documentation checked.
- Completed a cost segregation study and want it pressure-tested before an exam.
- Want a professional read before a notice forces the question.
Whether you run a highway property, a city-center hotel, a boutique family-run establishment, or a multi-location extended-stay operation, the work is tailored to your scope.
Why a CPA firm
Why a hotel audit needs a CPA firm
Hotel-specific authority
We apply the Tax Court precedent and IRS guidance that govern hotel asset classification, not a generic framework borrowed from another industry.
Sales tax positions tested like an auditor would
Occupancy, exemption, and fee treatment are reviewed against how a state examiner reads them.
Senior handling
Hotel matters run with senior staff, not routed to a generalist.
CPA accountability
The work is issued by a licensed CPA firm that stands behind its conclusions. A reviewed spreadsheet does not carry that weight.
Why choose Dimov Audit
Why hotel owners bring this work to Dimov Audit
Hotel-specific authority, occupancy and exemption tested the way a state examiner reads them, and senior staff on the file — backed by hundreds of audit and attestation engagements across every state.
500+
audit and attestation engagements
50
states served, nationwide coverage
4
tax lines tested: income, sales, occupancy, classification
CPA
licensed IRS and state representation
Scoping
What drives the cost of a hotel audit
Hotel audit work is priced by the engagement, not a flat rate.
We size the work against your situation and give you a clear quote before you commit.
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
211 E 43rd St Suite 628
New York, NY 10017
United States
Hotel audit FAQs
Are your financials audit-ready?
Are Your Financials Audit-Ready?
At Dimov Audit, we pride ourselves in quick communication, accurate work, and seamless delivery.