Case Study: Professional Services
BACKGROUND
ABC Company is a publicly traded multinational information technology and consulting firm operating in nearly all U.S. states. The company has employees, contractors, and sales scattered across the nation. ABC Company was concerned about its obligation to collect and remit sales tax in these states and sought Mo's expertise to accurately determine its nexus footprint.
CHALLENGE
The key challenge for ABC Company was determining where it had nexus due to its widespread business operations. Given the complexity and variability of sales tax laws across states, understanding where ABC Company was obliged to collect and remit sales tax was a significant challenge.
SOLUTION
To address ABC Company's concerns, Mo conducted an extensive Nexus Study. He worked closely with ABC Company's personnel to understand their sales, products, services, and the company's physical footprint. After gathering this information, he then used an in-depth Nexus Questionnaire to analyze their sales tax obligations.
RESULTS
Mo's study revealed that ABC Company did have a nexus in many jurisdictions where they were not currently filing. With this knowledge in hand, Mo helped ABC Company register in these jurisdictions and also assisted them with the Voluntary Disclosure Agreement process where it was beneficial. This process helped the company avoid penalties and limit the look-back period.
CONCLUSION
With Mo's guidance, ABC Company was able to accurately determine its nexus footprint and become compliant with financial reporting rules concerning sales tax reserves. By entering into Voluntary Disclosure Agreements in some states, ABC Company also managed to reduce their tax liability and penalties. Mo's assistance brought clarity to ABC Company's complex sales tax obligations and helped them rectify their sales tax compliance issues.
AT A GLANCE
CHALLENGES
ABC Company had widespread operations across the U.S and was unsure about their sales tax obligations.
Determining the company's nexus footprint was a complex task.
BENEFITS
Mo conducted a comprehensive Nexus Study, accurately determining the company's sales tax obligations.
Improved sales tax compliance and accurate sales tax reserves.
Reduced tax liability and penalties in certain states through Voluntary Disclosure Agreements.
TIME AND RESOURCE SAVINGS
With Mo's assistance, ABC Company saved time and resources in determining their sales tax obligations.
He guided the company through the registration process and Voluntary Disclosure Agreements.
FINANCIAL SAVINGS
ABC Company reduced tax liability and penalties in certain states through Voluntary Disclosure Agreements.
They ensured accurate sales tax reserves, aiding compliance with financial reporting rules.
EXPERTISE
Conducted a comprehensive Nexus Study to determine the company's sales tax obligations.
Assisted with company registration in multiple jurisdictions.
Guided the company through the Voluntary Disclosure Agreement process to avoid penalties and limit the look-back period.
ADDITIONAL BENEFITS
Improved sales tax compliance for ABC Company.
Reduced tax liability and penalties in certain states through Voluntary Disclosure Agreements.
Ensured accurate sales tax reserves for financial reporting.
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.
