In recent years, the State and Local Tax arena has been growing in both size and complexity. If you include all State, County, City, Municipal, and School Districts, there are well over 7,500 separate taxing jurisdictions in the United States. Sales and Use taxes are an important part of a State’s revenue base, and have accordingly received increased attention in recent years. The professionals at MCM can help you navigate these complexities through the use of the following services:
Sales/Use Tax Training
Our Sales and Use tax professionals can assist you with the proper application of sales/use tax rules affecting your business. Using a customized training program based around your current business operations (industry, states involved, etc.) we will help you develop best practices and procedures designed to minimize needed compliance efforts while developing consistency to the process.
Reverse Sales Tax Audits
Reverse Sales Tax Audits are similar in many ways to traditional audits performed by the Department of Revenue, but differ in that we seek to identify and recover tax overpayments. By understanding your company’s sales and use tax procedures and examining relevant accounts payable and capital expense accounts, our professionals will work to determine if the proper amount of tax has been paid. If overpayments are discovered, we will work to recover your funds through the use of a refund claim or sales/use tax credit.
In a nexus review, our professionals will work to determine what states or localities you have a legal filing requirement. We make this determination through the use of several methods, including but not limited to interviewing relevant personnel and reviewing your current business operations. If we determine the company should be filing additional state sales and use tax returns, we can help to reduce your exposure through the use of Voluntary Disclosure Agreements (VDAs). Alternatively, we may be able to make suggested changes to your operations that would allow the company to avoid filing.
Audit / Tax Controversy Assistance
Our professionals have represented clients in many audits in most states. By getting us involved, we can help your company navigate and manage the audit process with the goal of achieving the best results possible. After the audit, should disagreements with the state exist, we can help to mitigate exposure through the appeals process.
Compliance Assistance and Consulting
Through the review of your company’s current compliance efforts, we can help to streamline the sales and use tax process. Our professionals have significant experience across many different industries, and can share sales and use tax department best practices with the goal of saving you both time and money.
If you have any questions about how Sales & Use taxes may affect your business, please contact Tax Partner Byron Largen, CPA.