Case Study: Nonprofit / Education
BACKGROUND
Two major universities approached Mo with a complex issue. Apart from regular class tuition and book fees, the universities sold various merchandise at their stores, tickets to sporting events, and charged both students and non-students parking fees. However, their Point of Sale (POS) system was indiscriminately charging sales tax on everything. Recognizing the need for expert advice to untangle this issue, they sought Mo's assistance.
CHALLENGE
The universities had a broad spectrum of products and services, which further complicated the issue of taxability. It was clear that a blanket approach to sales tax was inappropriate, yet determining taxability on a case-by-case basis was challenging. This dilemma prompted the universities to seek Mo's expertise.
SOLUTION
Mo embarked on a thorough analysis of the universities' products and services, and conducted tax research on the taxability of non-profit and governmental entities in their state. To gain further insight, he contacted other university stores and sports ticketing sales offices to understand their approach to sales tax. Mo also had anonymous conversations with several representatives of the state tax division.
RESULTS
Upon completing his investigation, Mo provided both universities with a customized tax matrix. This matrix detailed the taxability of each item, including merchandise, sporting event sales, and various parking scenarios. The universities were then able to program their POS systems accordingly, ensuring that sales tax was only applied where necessary.
CONCLUSION
Thanks to Mo's expertise, the universities were able to resolve their sales tax dilemma. They now only charge sales tax on items where it's necessary, providing an economical solution for their students and sporting event attendees. Mo's assistance brought clarity to a complex issue, leading to a significant improvement in the universities' sales tax compliance.
AT A GLANCE
CHALLENGES
Universities were indiscriminately charging sales tax on all products and services.
Determining taxability on a case-by-case basis was challenging.
BENEFITS
Mo provided a customized tax matrix to determine taxability of each product and service.
Sales tax was correctly applied, improving compliance.
Students and sporting event attendees benefited from cost savings.
TIME AND RESOURCE SAVINGS
With Mo's assistance, the universities saved time and resources spent on determining taxability.
Improved POS systems ensured the correct application of sales tax.
FINANCIAL SAVINGS
Appropriate sales tax application led to cost savings for students and sporting event attendees.
EXPERTISE
Mo conducted comprehensive research on the taxability of non-profit and governmental entities in the universities' state.
Provided a customized tax matrix detailing the taxability of each product and service.
Facilitated the correct application of sales tax via the universities' POS systems.
ADDITIONAL BENEFITS
The universities improved sales tax compliance.
Students and sporting event attendees experienced a decrease in costs.
OUR MISSION
What sets us apart from other sales tax consulting firms is our commitment to offering top-notch services without charging exorbitant fees typical of other firms.
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We believe that every business deserves quality sales tax consulting that is accessible and affordable, and we have built our practice around this core value.
