Overpaying Sales Tax?
Yes, it’s a problem! Even if you have a highly trained, expert sales tax staff, you could be overpaying sales tax. In today’s economy every dollar counts and these overpayments are money that could be used to create budgets for other projects, hire additional people or any other way you deem appropriate. These overpayments are usually recoverable. Also, by finding an area where your company has been historically overpaying tax, you gain the added savings of stopping future overpayments.
We Can Help
Since 1992 our deep understanding of state tax issues has enabled us to recover hundreds of millions of dollars through a process called a Refund Review or Reverse Audit. Over the last 20 years we have developed a streamlined process that allows us to review your records for overpayments and double payments as well as unused credits and exemptions. Once we identify these refunds we work to get the money back to you. We also show you what we have done so you can implement the necessary changes in your system for future years. Best of all we perform these services on a contingency basis; which simply means we don’t get paid unless and until you do.
"You assumed the entire responsibility for all the work including the recovery of funds. And. we hardly knew you were there. A special thanks to you for identifying for our team some additional savings on a go-forward basis. It was a great experience to have such a qualified, informed staff working for and representing our company."
Fortune 500 Company
Every year state tax auditors assess hundreds of millions of dollars to unsuspecting businesses. If hoping for the best isn’t good enough for you, then you may want to consider a preemptive strike. As part of every refund review, we perform a 16-point checkup. We look for areas of exposure that you may not be aware of. We also look for ways that you may be able to improve efficiencies. Here is a sample of some of the points we cover.
- Taxability of items sold
- Accuracy of tax rates charged
- Validity of resale/exemption certificates
- Potential nexus exposure.
- Use tax accruals
- Overall compliance
I Don’t Have Overpayments or Exposure
Almost every one of our Clients had this same thought. While some of them were correct, the majority of them have found out they have one or the other or both. This Refund Review with the 16 Point Checklist is a great way to find out where you fall. Since it is done on a contingency basis you have no risk. If we don’t find anything then you get the peace of mind that another set of eyes has confirmed you are running a tight operation at no cost. If we find exposure then you have advance warning to correct it. The worst time to find out you have exposure is from the state auditor. If we find overpayments then congratulations!
This checkup is performed as part of our normal refund review. There is no additional charge. Once we have concluded our 16 Point Checkup, we present you with our preliminary findings and recommendations. You then decide what, if anything, to move forward.
"You kept your word. No interruptions. Just, "Where's the coffee, the restrooms and the last 12 months of AP files?" And the result: a substantial amount of money refunded to us."
Refund Review Case Studies
The Situation: One of the largest Trade Show Specific Contractors in the U.S. wanted to review their payments to the states in which they did business. They had one major concern: "Don't take up any of the time of our limited accounting department."
The PJCo Solution: Staying almost unseen, resulted in the identification and recovery of over $300,000.
Quote: "The audit was conducted with very little effort on the part of our accounting personnel and the fees were more than fair. Especially considering the fact that without your efforts, those recoveries would not have happened."
The Situation: A Multi-State Grocery Store Chain was concerned that they may be making overpayments on exempt items.
The PJCo Solution: A quick review identified and obtained agreement from the states resulting in over $80,000 worth of refunds.
Quote: "By taking the time to work through our vendors and engineers, you determined the scope of our refunds and helped us prepare to receive go-forward benefits"
The Situation: A Manufacturer of Ceramic Refractors wanted to make sure they were being taxed fairly by each of 9 different states they were doing business in.
The PJCo Solution: A thorough review created a windfall in excess of $80,000. Due to the magnitude of the refunds, the State reviewed the information processed. The refund stood as claimed.
Quote: "The sales and use tax review you did for our company reaped huge benefits. Peisner Johnson handled the entire process from the research of our records to the collection of funds."
The Situation: A Provider of Wireless Communications services had PJCo review some of their tax practices.
The PJCo Solution: Found many charges that qualified as exempt purchases resulting in refunds in excess of $1,025,000.
Quote: "We're amazed by the issue you found and the fact that it went in our favor. But most exciting are the continued additional refunds you are acquiring for us."