“Peisner Johnson was a natural choice for Coburn’s Supply Co. given their experience handling sales tax audits and their ability to communicate effectively with auditors. Their advice while navigating this sales tax headache has been invaluable."
- Paul Lee | CFO - Coburn’s Supply Co.
Since 1934, Coburn Supply Company has been a family-owned distributor of plumbing, electrical, waterworks and HVAC products and services. The company has carved out a significant niche for itself in the competitive landscape of the home improvement sector. With an extensive network of over 60 locations strategically arranged across the Gulf Coast, Coburn's has gained widespread recognition for its unparalleled customer service.
The company boasts an impressive catalogue of high-quality products, such as: major appliances, tools, home finishes, home decor, and more. Whether they are supplying professionals with the best equipment or dazzling homeowners in their sparkling showrooms, Coburn’s is the place to go for new builds and remodeling projects.
Unforeseeably, Coburn's found itself embroiled in a complex state tax audit. The company faced a daunting sales tax liability in Louisiana, exceeding $1,000,000. Accusations of underreported sales tax as well as improperly taxed purchases had been levied against the company, creating an exigent situation that seemed insurmountable.
"We were able to streamline our processes and approach our future sales tax situation with confidence."
- Paul Lee | CFO - Coburn’s Supply Co.
A few years prior to encountering this audit, Coburn’s had handled all sales tax work in-house, including audits. But their accounting team found they were spread too thin by the tedious nature of filing sales tax returns each month. So they chose to outsource these tedious tasks to Peisner Johnson, The Sales Tax People. This white-glove service was exactly what they were looking for as it seemed to function as an extension of their in-house team.
Fast forward to now, understanding the enormity of this impending $1Million financial burden, Coburn’s again sought to lean on The Sales Tax People for help. Coburn’s was immediately impressed with Peisner Johnson’s discernment of the audit situation, as well as their confidence in being able to identify what had gone wrong with the current process to land them in such a situation.
“Audits like this can destroy companies.” says Peisner Johnson CEO Jason Parr. “Margins matter to your business, but they don’t matter to the auditor. They will scrutinize your business looking for even the most minor of mistakes, but they don’t provide any solutions that bring peace of mind. Leaving you feeling helpless and pressurized to pay whatever amount they state, just to make the audit go away.”
"We let Peisner Johnson handle all of our sales tax filings. Knowing that our sales taxes are handled, we are able to shift much needed focus to other projects within our business. And when future audits come our way, we know Peisner Johnson has us set up for success.”
- Paul Lee | CFO | Coburn’s Supply Co.
As Peisner Johnson stepped in, they undertook a meticulous analysis of Coburn's financial data, identifying potential areas where sales tax might have been inaccurately reported or miscalculated. The team was able to uncover tax reconciliation errors, pinpoint sales transactions that should have been classified as tax-exempt, and utilize their profound knowledge of state's tax laws to reframe the narrative surrounding Coburn's tax situation.
Through diligent efforts, the Peisner Johnson team successfully managed to drastically reduce Coburn's tax liability to an amount just over $100,000. Eliminating ~$900,000 of the initial audit amount! They also aided in adjusting internal systems to ensure the same reporting and exemption errors do not happen again. And once again, saving time and headache associated with solving tedious sales tax complications.
Because of Coburn’s company size, they will likely be re-audited in the future. But no matter what state may come knocking, Coburn's is now empowered to defend themselves. And in the chance they need help, they have Peisner Johnson, a team of real sales tax accountants and consultants they can access at any time.
