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Frequently Asked Client Questions
I am being or have been audited.
What can you do?
We provide sales and use tax audit representation
services tailored to your specific needs. These services
range from turnkey audit representation to a limited review
of findings. Because sales tax auditors are generally paid
to assess tax rather than give refunds, we maintain a dual
strategy throughout the audit process. First, we minimize
the assessment by focusing on the auditor's scheduled items.
Next, we examine areas not tested by the auditor to identify
credits or overpayments which can offset an audit assessment
or support a claim for refund.
Have
I under or overpaid sales and use tax?
We will perform
a credit and refund study independent of an audit and can
file claims for refund in any state. Opportunities exist
in all industries that pay a large amount of sales tax reimbursement
or use tax. Because we perform these studies on a "percentage
of recovery" basis, there is no risk to you; if we do
not create savings, there is no fee for our services.
What
is taxable in my state and other states where I do business?
Regardless
of the level of sophistication of a client's sales tax reporting
process, the client still needs to accurately inform the
system as to what products and services are taxable in each
state. Our taxability study will determine which of the products
and services you sell are taxable in any state. We prepare
an easy-to-use sales tax matrix supported by research tailored
to your specific products. The matrix will be supported by
written opinions from states where taxability is uncertain.
Our research will also minimize disputes with customers regarding
sales tax billing.
Am I required to register in a state?
The nexus requirements
for sales and use taxes are much different than for income
taxes. In layman's terms, there are many activities that
will not cause nexus (a filing requirement) for income taxes,
but will cause nexus for sales tax purposes. We will examine
your activities on a multi-state basis, determine your sales
tax exposure, and give you the tools necessary to determine
whether it makes sense to register and file sales tax returns.
We will also enter into anonymous negotiations with a state
to minimize the tax due, penalties, and the audit period.
Can I modify
a transaction to minimize tax?
While sales tax avoidance is
discouraged, sales tax minimization is a taxpayer's Constitutional
right. We have strategies to minimize sales and use tax on
a wide variety of transactions, from software purchases,
to boats and airplanes, to sales of entire businesses. Key
to these strategies, however, is our involvement before the
date of the transaction.
Is my company reporting correctly?
Companies
typically delegate the sales tax reporting function to clerk
level positions. Consequently, high turnover in these positions
can create inconsistency in the sales and use tax reporting
function. We will examine your reporting process and recommend
solutions to correct problems and minimize sales tax exposure.
Typical recommendations include in-house training, documenting
reporting processes in a sales tax manual, or automating the
sales tax compliance function.
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