Sales Tax Preparation & Filing Services
Whether you are a multi-state corporation or online retailer trying to navigate the new “Wayfair” decision, or whether you are a single location business, we can handle any state and local sales & use tax return, regardless of size or complexity.
Sales Tax Preparation And Filing Services
Whether you are a multi-state corporation or online retailer trying to navigate the new “Wayfair” decision, or whether you are a single location business, we can handle any state and local sales & use tax return, regardless of size or complexity. Some of the benefits of our services include:
Sales-Down or Tax-Up Reporting: There are two generally accepted methods of computing the sales tax liability that goes onto a return: sales-down or tax-up. Sales-down refers to starting with the taxable sales in each jurisdiction and applying the local tax rate to compute the liability. Tax-up refers to starting with the tax collected and “grossing up” the tax to the sales amount in that jurisdiction. Regardless of which method you prefer, we can handle the liability calculation in any jurisdiction in the country.
Data Insights: While there is a minimum amount of information, we require to prepare your returns, the more information we get, the better. Our data insight analysis can benefit your business far beyond sales tax compliance. For instance, our system helped a restaurant owner discover that one bartender was opening the cash drawer 10 times more often than all the others. Further investigation revealed he was stealing from the till costing the restaurant thousands.
Economic Nexus Threshold Monitoring: We monitor sales in all states to determine if sales are approaching existing thresholds in economic nexus states. We also monitor which states are bringing “Wayfair statutes” online and notify you accordingly so you can get registered as soon as possible.
In-House Audit Representation: While we don’t anticipate it, if you should be selected for an audit, we will represent you in-house, rather than outsourcing to a third-party. We have been representing companies in sales tax audits for more than 20 years and have the expertise to handle any audit.
Brick-and-Mortar and Online Retailers: Whether you have one location or 20, we can eliminate the complexity and headache of filing sales tax returns in any state. Since 1999, Sales Tax Resource Group has successfully represented hundreds of taxpayers in California sales tax audits. We are former California sales tax auditors and have extensive experience representing taxpayers in audits, appeals, settlements, offers in compromise, and other matters before the CDTFA and Board of Equalization.
Audit Defense
Sales and use tax audits present huge challenges to public and private companies alike. Whether you are a Fortune 500 company or a small restaurant chain, the sales tax auditor will eventually show up. STRG has successfully defended hundreds of companies before the California Department of Tax & Fee Administration (formerly State Board of Equalization), as well as other state agencies around the country, resulting in millions of dollars worth of reductions in audit liabilities for our clients.
Our success stems from a two-pronged approach to the audit. In addition to contesting items scheduled in the audit working papers, we uncover hidden credits and overpayments of sales or use tax which can be used to offset the audit liability. Because auditors are paid to assess tax, these hidden credits are often overlooked. As a result, even when an audit liability appears rock solid, there are usually opportunities to reduce the audit assessment.
At the outset of the engagement, we will tailor an audit defense strategy to fit your specific needs. We offer sales and use tax audit defense services beginning with a pre-audit review all the way through the appeals process, settlement, or formal hearing before the Office of Tax Appeal or other appropriate state agency. We also provide sales and use tax consulting services, such as legal research and requests for opinion.
Our partners and staff include former California State Board of Equalization auditors, and consultants and managers from the “Big 4″, as well as some of the largest state & local tax firms in the world. We know how sales tax auditors think and the best ways to minimize or offset audit deficiencies. The best time to involve us is before the auditor arrives; however, we can reduce the liability at any stage, even after the audit liability has been paid. Many audit representations can be performed on a “recovery based” fee arrangement. That is, our fees can often be based on the reduction in the liability so you only pay a fee if the audit liability is reduced.
Credits and Refunds
If you pay sales tax to vendors, or accrue use tax on purchases, you may be over-reporting your sales or use tax liability. Even if you had a no-change audit, you may have overpaid the tax. Sales & use tax auditors are paid to assess tax, not refund it. This is a fact of life.
Research
We use state-of-the-art research tools to gather information and track changes in state laws, rules, and regulations, as well as policy and court cases. Our research tools allow us to remain on the cutting edge of changes in the application of sales and use tax laws to companies required to collect, remit and report state sales and use taxes. Many of the changes and updates result in tax saving opportunities that can result in retroactive claims for refund.
Playbook
We track changes in tax laws, policy, or court cases that result in opportunities for companies to recover overpayments or credits of state sales and use taxes. We incorporate these changes into our “Playbook.” The playbook is a proprietary matrix we use to quickly match your company with potential opportunities for sales and use tax refunds. Using the playbook, we will identify specific areas to examine, and develop a plan to efficiently determine whether a sales or use tax credit opportunity should be pursued. This method has been proven to minimize the amount of client and consultant time spent on recovery projects.
Review
The review process begins with a detailed examination of your sales and use tax returns. This examination is designed to uncover sales & use tax overpayments. Next, we use the playbook matrix to test opportunities identified in the Playbook phase of the review. Depending on the results of the test, we will either expand our examination of these refund opportunities, or determine that the sales tax recovery is immaterial and move on.
If the testing results in a likely refund, and the volume of information is large, we use information management software to perform statistical samples of transactions. Sampling allows us to test a small number of transactions and project the results over a larger population. Statistical analysis allows us to determine the extent to which the sample accurately represents the population of the transactions. Our use of technology allows us to minimize the time spent performing a review, as well as the burden on your staff.
Refund
We use the results of our test to document and support the sales tax credit or claim for refund. We file the claim for you, document the adjustments, and manage the refund claim throughout the entire review process. In the event the sales tax credit can be claimed directly on a sales and use tax return, we will adjust the affected return to reflect the reduction in sales and use tax. Our experience with state tax agencies allows us to streamline the refund process and obtain the refund as quickly as possible. Because our fees are based on the refunded amount, there is no risk to you in the event a sales or use tax recovery is not achieved.
Taxability Research
Are your products and services taxable in your home state? How about other states where you sell? Regardless of the sophistication of the sales tax reporting system, the system still needs to be told what is taxable and what is not. We will research your products and services and provide an easy-to-use, accurate, and researched Taxability Matrix showing the taxability of your products and services in the states you choose.
As an added benefit, your customers will no longer call to argue over whether your product is taxable in their state. You will have the research at your fingertips.
Eliminate Disputes with Customers over Taxability
Easily Updated for Changes in Laws
Reduce Potential Audit Exposure and Penalties