Drive Profitability in all Aspects of your Purchasing Activities with Source One's Sales and Use Tax Audit Services
When it comes to sales and use tax, proactive practices mean the difference between just minimizing risk and maximizing savings opportunity.
We’ve all heard the expression that “nothing is certain except death and taxes,” and we all expect to pay taxes every time money changes hands. Especially for businesses, where purchases run aplenty in the course of day-to-day operations, companies just take it as a given that they have to pay sales and use tax for 99% of purchases. And thanks to nebulous and difficult-to-decipher tax laws that vary from state to state, companies unfortunately end up overpaying sales and use tax. Add to the mix any run-of-the-mill accounting errors, plus all the overpayments and errors that your vendors are making, and it’s easy to see how understanding sales and use tax, and properly paying only the amount you owe, becomes exceedingly difficult and time-consuming.
That’s where Source One comes in. Our sales and use tax audit services alleviate all your headaches and take out all the guess work between you, your vendors, and the state to recover your overpayments and save you money going forward.
With our decades of purchasing experience, Source One has the skills and expertise needed to help your company overcome the challenges associated with right-sizing & right-timing your sales and use tax payments. Our Sales and Use Tax Audit Services provide a comprehensive review of your company’s purchases for the past three to four years to:
- Identify all sales and use tax overpayments
- Understand why the overpayment occurred
- Establish an actionable strategy to obtain recoveries
- Manage the recovery process from beginning to end
- Equip your company with actionable recommendations for business process improvement
Once we’ve determined all instances of overpayment, we’ll manage all the recovery activities, including obtaining refunds from vendors, opening a sales and use tax audit with the state, or filing a direct refund claim with the state. Our Sales and Use Tax experts will help you gather all the documentation needed to confirm your claim, streamline the information so the receiving party can review the documents efficiently, prepare you to discuss the type of exemptions, how they apply to the invoices, and the documents you have provided with the receiving party, and provide you leverage and techniques for negotiation.
Beyond correcting past mistakes, our Sales and Use Tax Audit Service includes expert advice and techniques to help you prevent sales and use tax overpayments in the future:
- Coding tax-exempt transactions to the correct general ledger account on which use tax is accrued
- Qualifying for a zone exemption and putting a process in place to capture those exempt costs
- Avoiding accruing use tax on invoices on which you have already paid sales tax
- Knowing when not to pay tax because the vendor already has
- Meeting the manufacturing or research & development exemption on energy
- Paying sales tax on software licenses for the state of use vs. purchase
- Classifying transactions as capital improvements instead of repairs
- Writing off bad debt and taking a deduction on your sales tax returns
The icing on the cake? Our sales and use tax audits are contingency-based. Our pay-for-performance approach to sales tax audit means you don’t pay us for this work until after you’ve gotten your refunds for sales tax overpayments.
Contact our sales and use tax audit experts today to learn more about how our Source One can drive profitability for your company in this complicated area.
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