Sales and use taxes are imposed by 45 states and the District of Columbia. When combined with counties, cities and other special local jurisdictions, there are more than 9,000 unique taxing jurisdictions throughout the United States.
With constantly changing laws and aggressive auditors tasked with checking whether taxpayers are fully compliant, you need a trusted team of experts in your corner to assist in all of your multistate sales and use tax needs.
Our experienced professionals have developed an unparalleled level of knowledge of these laws in order to keep our clients compliant while paying only the minimal amount of tax legally due.
We provide a variety of services for our Clients and will adapt our approach to fit the specific needs of your company.
We are positioned to develop comprehensive solutions to address your Sales and Use Tax service needs. Our projects typically include one or more of the following areas of expertise.
Our reverse audit approach is simple: return lost revenue that resulted from the overpayment of sales and use tax. We will work to gain a detailed understanding of your company’s business operations in order to evaluate all exemption and exclusion opportunities. Using data analytics, our team will conduct a thorough review of your company’s purchasing activity in order to identify tax overpayments. Then we’ll work with the taxing jurisdictions to recover those overpayments. At Clearview, we don’t stop there — we also work with our clients to transfer the knowledge necessary to prevent future overpayments.
Sales and use tax audits can be extremely burdensome on companies, from both a financial and personnel perspective. The experts here at Clearview have decades of experience in advocating on our Clients’ behalf before state and local agencies. We work closely with the taxing authorities to ensure that audit issues are correctly defined and that there are no “gray areas.” We will also work with your company to develop the best approach to identify the lowest assessment possible, as well as look for refund opportunities to offset any tax that may be owed.
A nexus survey is designed to identify the taxing jurisdictions where an entity has sales and use tax filing obligations. Our seasoned experts will review your responses to our nexus questionnaire, analyze your business operations, and review your registration and filing history in order to identify the taxing jurisdictions where your company has a legal responsibility to file sales and use tax returns.
Our nexus survey projects typically include an estimate of potential exposure and recommended policy and procedure changes. The recommendations could include the development of a taxability matrix that is designed to ensure your company is properly charging sales tax in the jurisdictions where it has a filing obligation and may include pursuing Voluntary Disclosure Agreements (VDAs) with one or more jurisdictions to address past-due liabilities.
Most states have a Voluntary Disclosure Agreement (VDA) program. The program is designed to allow taxpayers who have outstanding liabilities to come forward voluntarily (before receiving an audit notice) to resolve the liabilities. States typically offer concessions on look-back periods and penalty abatement for taxpayers who resolve outstanding liabilities through VDAs. These concessions could potentially result in a final liability that is materially less than an audit assessment otherwise would be or could result in reversing part of a financial statement accrual.
Clearview’s seasoned professionals can assist in negotiating the terms of the VDA with the jurisdiction and calculate the tax due by applying the jurisdiction’s tax laws to your company’s sales and/or purchase detail for the period covered by the agreement.