State Tax Audit Defense

Are You Currently Under Audit?

Faced with budget cuts and deficiencies, states are becoming more aggressive and creative than ever in collecting tax. We've noticed an increase in changes to state law, limiting exemptions, increasing rates and expanding liability. But that doesn't mean you have to pay more than what you're required.

We Can Help

PJCo, founded in 1992, is comprised of former state auditors and other professionals with years of experience. We learned long ago that when dealing with audits, knowing the statutes isn't always enough. Sometimes a successful audit defense requires having an “insider” on your side. Although they do not get special treatment, a former auditor knows the personalities and the system, as well as the statutes. We have developed a nationwide network of insiders — former state auditors who know the right questions to ask, the right people to talk to, and where to give in order to get.

PJCo has been involved in thousands of sales tax audits. We understand what a state sales tax audit can do to your life. Not only does it cost you in actual dollars and cents, but the additional stress and time spent is considerable.

Because of our experience, knowledge, and familiarity with state auditing procedures, we can help you through a sales tax audit. Our audit defense and support services are designed to:

  • Minimize sales, use, and franchise tax audit assessments.
  • Reduce business interruption.
  • Ensure the most favorable results possible.
  • Identify issues that can be appropriately protested, file administrative appeals on your behalf, and represent you in disputes before the taxing authorities.

Getting Started is Easy

1. First, we will provide an initial review of your sales tax audit. There's no cost or commitment on your part for us to do this quick review.

2. After we conduct the review to estimate your exposure. Our findings and recommendations will provide you with a plan of action to minimize the audit assessment for your company. If we believe that we can help, we will discuss your options for our involvement.

3. Then, we will schedule a time to review your files. We will analyze sampling methods and test periods, and establish guidelines for the auditor to follow. We also monitor the audit progress so that your tax or accounting department can focus on issues that are more productive. There's usually nothing else for you to do.

We likely can reduce or eliminate your audit. We don't get paid unless and until you get a refund or reduction to your sales tax audit.

Over 85% of companies overpay tax.

We can help recover that money.


"Our company was exposed to a state sales tax audit that left us facing a considerable liability. The end effect was not only a wash of the liability, along with the associated penalty and interest, but our company realized a significant refund due to the efforts of Peisner Johnson. Then you performed a historical review wherein you captured another considerable refund for us. We appreciate your expertise and the professional manner in which you represented our company with the State and our vendors."

Roger Elms 
Controller ~ NCI Building Systems

Other Audit Services

  • State Audit Support - If you're undergoing an audit but have the staff to work with the auditor, we can support you in an advisory role.
  • Managed Audits - Some states allow the taxpayer to conduct their own audit under certain circumstances. If you qualify, we can help!
  • Audit Review - We'll look over an auditor's findings objectively to ensure that you're getting a fair assessment, as well as look for areas where you may be due a refund.
  • Host An Auditor - Sometimes you may not want the distraction of having an auditor rummaging around your office. Let us host an auditor for you.

"Your hard work and integrity are refreshing in today's environment. Your diligent efforts resulted in the obtaining of $97,000. We will continue to work with you in the future. It will cost us money if we don't."

Controller 
Automotive Dealership

Audit Defense Case Studies


MANUFACTURER

The Situation: A building systems manufacturer was audited by the state and faced a considerable liability.

The PJCo Result: The end result was not only a complete wash of the liability, along with the associated penalty and interest, but also a significant refund due to the efforts of Peisner Johnson. Then, a subsequent review captured another considerable refund for the client in another area.

Quote: "We appreciate your expertise and the professional manner in which you represented our company with the State and our vendors."


HEALTHCARE PROVIDER

The Situation: A large healthcare corporation was inundated with sales tax audits in multiple states. They wanted a third party to help them work their audits to completion without adding headcount.

The PJCo Result: Saved them a staggering $7 Million on one sales tax audit and turned a $2.9 Million audit into a refund of over $500,000.

Quote: "While many other A/P review firms have someone on their staff that has some background in sales tax, they simply are not experts in working sales tax audits. We don't want to use anybody but experts who do this type of work 100% of the time. Peisner Johnson is the expert."


TELECOMMUNICATION

The Situation: A division of one of the largest telecommunications companies in the U.S. faced a state tax audit assessment of over $5 Million in tax, penalty and interest. Their internal tax department had worked the audit down substantially, but had run out of time and people to look for any more reductions.

The PJCo Result: In a limited amount of time - two weeks - were able to locate and gather the necessary information and documentation to support findings that resulted in a $2.1 Million reduction.

Quote: "Two weeks of having you involved meant an extra 40% reduction. Wow!"


MANUFACTURER

The Situation: A medium-sized manufacturer of cameras and related production equipment was assessed nearly $200,000 by the state of Texas.

The PJCo Result: A Re-determination & Statement of Grounds was filed because there was some question as to the way the specific law was interpreted. After a binder of certificates was presented to the auditor, the entire assessment was wiped clean.

Quote: "It's still hard to believe. From a $177,566 audit assessment to the auditor deciding to amend the audit to no tax due."