Sales & Use Tax Reverse Audit

Companies operating in multiple states must be vigilant. Even tax diligent businesses find it difficult to keep abreast of changing sales and use tax laws and interpretations in the states they operate. 

Some companies limit their potential tax exposures and penalties from audits by purposefully paying tax on a purchase as a default position. This conservative position may be especially true if a company has received large sales or use tax assessments in the past. However, the down side of this approach is that a company may over pay taxes as much as 5 to 9 percent of their purchase costs. 

Recover overpayments through a sales and use tax reverse audit and get back what is yours.Rarely does a state auditor notify you of your tax overpayments or favorable tax law changes in an audit. Hall & Company state and local tax specialists includes former state auditors who know how and where to find missed opportunities. We ensure that your company pays only the necessary tax owed.

A reverse sales and use tax audit is a comprehensive review and analysis of your purchase and sales transactions. Through this review, we’ll identify exempt or non-taxable transactions you may have inadvertently paid sales and use tax on. The analysis is also helpful in identifying areas of underpayments. 

We thoroughly review your fixed asset and expense item purchases to determine if your company has overpaid sales and use taxes. When refunds are identified, we will then assist you in filing claims for refund of the overpaid tax. 

In addition to recovering lost cash, the audit findings are used as a basis for helping you develop written policies and procedures that can help minimize your overall sales and use tax costs on a continuing prospective basis. The results of a reverse audit may also be used as an offset to an ongoing state sales and use tax audit, which could minimize any additional assessments, penalties and interest.

For more information call Michael Nunez 949.242.0587