Sales tax rates, rules, and regulations change often and sales and use tax compliance varies greatly by state. Are you knowledgeable about the sales tax charges on services state-by-state?
It is important to your company operations and bottom line to uncover areas of overpayment, but it is a big challenge to find the time and expertise to address this issue on an ongoing basis. Our team of experienced professionals conduct reverse audits that take a deep dive into your transactions to identify where Sales & Use Tax errors have occurred.
We determine and document how much tax you should be refunded, and we will handle all the work to get that money back.
Our sales tax reporting services can help you correctly apply tax rates. Most importantly, we will train your employees to better understand the sales and use tax laws and exemptions in the states you operate in to prevent costly mistakes going forward.
What is a Reverse Sales Tax Audit?
A reverse audit helps your company recover “lost” tax dollars and offset audit assessments. Our goal is to not only help you achieve these short-term financial benefits but also improve decision making processes that will maximize sales tax savings and minimize exposure long into the future.
Explore our additional service offerings:
Industry Highlight: How can Manufacturers get Overpaid Money Back and Start Taking Advantage of More Sales Tax Exemptions?
Manufacturers have tremendous opportunities to lower tax bills by taking advantage of manufacturing exemptions, but correctly applying sales and use tax laws to their operations is challenging. The nuances of each state’s laws and regulations lead to common overpayment errors, exemption oversights, and underpayment exposure.
- Do you know the potential consequences of inaccurately accruing use tax on inventory movements?
- Are you confident that vendors are charging your business the right tax?
Overpaying vendor-charged tax can add up and you are responsible for self-accruing taxes to ensure the correct amount of tax is paid. While indirect tax overpayments are costly alone, underpaying the vendor-charged tax can result in additional penalties.
Cherry Bekaert will conduct a reverse audit to identify and refund overpaid sales and use taxes. Plus, we help you avoid overpayments in the future.
“The firm handled our reverse audit in a professional manner. We appreciate the thorough review to identify tax savings both during the review period and in future periods. The experienced staff explained all potential savings identified and maintained a high level of transparency throughout the engagement. It allowed our team to evaluate each position being presented.
They represented our organization with the related taxing authority in a manner that was consistent with our company values. We appreciate the firm for their continued partnership with our organization.”
– Food Manufacturer
The Phases of a Reverse Audit
Cherry Bekaert can perform an analysis of past company purchases to determine and recover erroneously paid taxes as well as other Sales & Use Tax services. A Reverse Sales & Use Tax Audit may include the steps below:
Phase 1: Scoping & Analysis
We analyze your business activities, review current purchasing, and accounts payable tax reporting systems, review recent sales tax audits, and identify refund opportunities.
Phase 2: Report of Findings
We present our overpayment analysis to you, identify suspected underpayment red flags, and recommend the refund plan of action.
Phase 3: Training
We conduct a customized sales and use tax training addressing specific issues discovered during your review and explaining processes to simplify sales and use tax compliance.
Phase 4: Refund Processing
We deliver refund claims to the Department of Revenue and/or vendors, help to process claims and provide you with monthly status reports.
Sales Tax Reverse Audit Service Client Interview
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