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Unfortunately, the combination of complexity and volume create the
situation where many of these mistakes are made. The simple fact is
that many consumers assume that the suppliers from which they
purchase have the correct systems in place to know the proper
application of sales tax and vice versa the supplier assumes the
same in reverse. It is an unfortunate situation for the taxpayer
but for many state and local governments it becomes a windfall in
additional tax revenues.
Sales and Use
Taxes are commonly referred to as a “Gray Tax.” The simple reason
for that is that the purchase of a similar product or service may
have a completely different tax application depending upon its use
or where it is used. This is the responsibility of the purchaser to
provide the supplier with the proper exemption certificate to ensure
that they are afforded the benefit of the tax exemption.
Unfortunately, this is the step that is many times overlooked by the
purchaser in that each person/department involved in processing the
transaction assume that the other is ensuring the proper application
of tax has been taken.
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BCCG's team of tax professionals will perform a detailed review
of your organization's invoiced sales & use taxes and the
processes associated with such to identify the existence of
sales & use tax refunds, recover those refunds and ensure that
your staff is educated and provided with a system in which to
follow to ensure that these errors do not happen in the future
and to assist them in identifying other types of purchases to
question in the future.
Our
sales & use tax process will include our team performing a
detailed review of the following to identify opportunities for
refunds/cost saving:
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Overview of business and its operations to assist in identifying
possible exemptions
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Initial on-sight review of accounts payable files including
invoices, purchase orders and other backup documentation, as
well as accounts payable policies and procedures (including
exemption forms on file) relating to sales & use taxes.
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Review previous state and local sales & use tax returns
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Review previous state and local sales & use tax audits (if any
within the last five (5) years)
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Prepare preliminary findings report - discuss report and agree
to next steps with client.
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Identify past exemptions and other possible exemptions to
utilize for future purchases
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Identify and introduce areas for improvement to both process and
controls
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Preparation and submission of refund claims and resolution of
such claims directly with suppliers and/or taxing authorities
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Negotiate and secure refunds and/or credits/reduction
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Ensure that proper and updated exemption certificates are on
file with appropriate supplier and accounts payable and
purchasing departments are provided with up-to-date list of
each.
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A
detailed training seminar focused on the client's respective
business(s) and the refunds/exemptions identified to assist
client in reducing future sales & use tax overpayments (NOTE:
Additional cost associated)
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