Case Study: Retail
BACKGROUND
ABC Company, a large multinational clothing and accessories firm, employed several major logistics companies to distribute their merchandise worldwide. However, ABC Company was unknowingly paying sales tax on these logistics services in states where such services were not taxable. To address this issue, ABC Company asked Mo to review four years of their logistics purchases and identify any overpayments.
CHALLENGE
The task involved going through numerous transactions and determining where the company overpaid sales tax. Given the variety of logistic services and their different taxability across various states, identifying the overpayments posed a significant challenge.
SOLUTION
Mo conducted a reverse sales tax audit to uncover any overpayments. He identified all of ABC Company's logistics vendors and commenced a thorough analysis of their invoices. Through this review, Mo found that ABC Company had overpaid sales tax amounting to $2M. He compiled sales tax refund packages and filed them with the relevant state taxing jurisdictions. Mo also represented ABC Company in defending the positions taken on the refund applications as the states responded.
RESULTS
With Mo's assistance, ABC Company was able to recover a significant portion of the $2M in overpaid sales tax.
CONCLUSION
Mo's expertise and methodical approach led to significant financial savings for ABC Company. They were able to recover a significant amount of their sales tax overpayment, allowing them to utilize those extra funds within various departments of the company.
AT A GLANCE
CHALLENGES
ABC Company was unknowingly overpaying sales tax on logistics services in states where such services were not taxable.
BENEFITS
Mo identified overpayments amounting to $2M through a reverse sales tax audit.
He helped the company recover a significant portion of the overpaid sales tax.
TIME AND RESOURCE SAVINGS
Mo's expertise saved ABC Company significant time and resources in identifying and reclaiming overpaid sales tax.
FINANCIAL SAVINGS
ABC Company was able to recover a significant portion of their overpaid sales tax, freeing up additional funds for use within various departments of the company.
EXPERTISE
Conducted a comprehensive reverse sales tax audit.
Analyzed four years of logistics invoices to identify overpayments.
Prepared and filed sales tax refund packages with various state taxing jurisdictions.
Defended the positions taken on refund applications as states responded.
ADDITIONAL BENEFITS
Recovered significant portion of overpaid sales tax.
Ensured compliance with various state tax laws.
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.
