U.S. companies operating in nearly all industries routinely overpay sales tax, which for many, results in an unforeseen loss of hard earned revenue. 

Typically, supply vendors operating throughout the U.S. charge sales tax to customers as a standard procedure unless the purchasing company notifies the vendor of an exempt sales tax status, and provides necessary documentation.  This leads to companies being overcharged sales tax when purchasing items used in business.  The complicated state-by-state sales and use tax statutes, as well as the following factors, typically contribute to the concealment of these overpayments:

• Turnover in personnel
• Supply vendor changeover
• Consistent changes in  sales tax laws
• Mergers and acquisitions
• Expansion into  new taxing  jurisdictions
• Misinterpretation of applicable sales tax exemptions

In addition, state governments often look to sales and use taxes when experiencing difficulty generating sufficient revenue to meet budgets and fund operations.  The unpopular political decision to raise tax rates encourages legislators to narrow the tax gap by aggressively enforcing compliance through expanding audit presence. Increased complexity and constant change in state and local sales tax code prove to be major challenges for many companies today. 

Tax Projects Group’s team of experienced sales and use tax professionals can help companies  explore opportunities for sales and use tax savings by assisting clients in obtaining sales and use tax refunds, credits and audit assessment reductions (including interest and/or penalties) relating to state and local sales and use tax.  Our professionals also assist clients by properly accounting for any future sales and use tax incurred.

All sales and use tax reviews are performed in a timely and professional manner with nearly no interruption to the client.   In addition, payment is contingent upon a success-based fee of any tax refunds or credits incurred, resulting in nearly no financial risk to the client.

TPG’s service professionals have extensive experience in the following areas:

• Sales & Use Tax audit representation, including managed and participatory audits
• Tax refund & accounts payable reviews
• Managed compliance/single rate agreements
• Sampling evaluation
• Voluntary disclosure and amnesty programs
• Transactional tax planning/consulting
• Employment tax consulting
• Business credit and incentive consulting
• Foreign Sales, Use, and VAT Tax Consulting

Our Process:

1. Preliminary Assessment

A preliminary determination of the sales tax refund potential is determined. This involves a full review of a client’s current and prior year(s) of accounts payable, invoices and related sales tax payment procedures.   *The statute of limitations for sales tax recoupment is a three to four year look-back study, depending on the state.

2. Identify Refund Potential

Identification of all areas of sales tax overpayments for all open statutes is determined and documented, and all findings are discussed with the appropriate personnel.

3. Obtaining Refunds

Documentation necessary to obtain the refunds from a client’s vendors and/or various state & local taxing authorities is secured.   This may include necessary follow-up submissions and meetings.  Preparation and filing of any claims submitted for refunds or credits, including any interest incurred, are handled by TPG. 

Refunds may be obtained from the vendor who originally charged sales tax, or from the state and local sales taxing authority.  In some circumstances, the client vendor may not want to pay erroneous refund claims to the client and/ or the client may decide not to pursue claim (s) with state and/or local taxing authorities.  In this case, the client value of the sales tax refund review is future tax savings. 

4. Payment Tracking

The tracking of sales tax refund claims and future credits is handled in full by TPG. This includes continuous follow-up correspondences with client vendors and/or applicable state taxing authority.