Frequently Asked Questions

About PMBA

What makes PMBA different?

With over 25 years of experience, PMBA utilizes cutting-edge internal technology, strategic partnerships, and unparalleled expertise to deliver a wide range of federal, state, and local tax services. Recognizing each individual client’s unique needs and goals, we provide focused strategies that cater specifically to you or your organization, rather than taking a one-size-fits-all approach. We don’t just do taxes; we aim to educate. View our case studies to get a better understanding of what makes PMBA special.

How can you help me with my tax goals?

Tax errors can be a pain to correct, which is why we help our clients get it right the first time. As your business evolves, so should your tax strategies. Our State & Local and Federal Tax leaders will not only prepare you and your business for every potential roadblock but we will advise you on all available incentives to save you money.

What services do you provide?

What industries do you serve?

Digital Marketing
Financial Services
Professional Services
Real Estate

What locations do you serve?

We serve companies from North America, Europe, South America, and Asia.

What accounting and payment processing software are you familiar with?

E-commerce platforms (Magento, BigCommerce, Shopify, and more)
Microsoft Dynamics
Oracle Netsuite

How do you monitor regulatory changes?

Our team is led by seasoned SALT and Federal Tax experts that have accumulated decades of knowledge and expertise. Our experience combined with access to top-tier research software keeps us informed of the latest state laws and guidance allowing us to track State, Local, and Federal tax changes that significantly impact our clients.

Sales Tax Recovery FAQs

What is a reverse sales and use tax audit?

A reverse sales and use tax audit reviews a company’s previous years of purchase data for possible errors or missed exemptions. An audit will analyze invoice data to reveal whether your company erroneously accrued sales or use tax. After an audit, the team at PMBA proceeds to claim any potential sales and use tax refunds from states or vendors on your behalf.

How far back does a reverse sales tax audit go?

The statute of limitations varies on a state-by-state basis. For example, New York carries a three-year lookback period and New Jersey has a four-year lookback period. For clients undergoing a sales tax audit, an extended lookback can be used to offset the existing audit period.

What type of information do you need to complete a reverse sales and use tax audit?

To start a reverse sales and use tax audit, you need to gather a detailed list of all of your company’s purchases for the period in review. Further, you should have access to your company’s enterprise resource planning/invoice system. To finalize a refund claim, additional information, like vendor contracts, may be required.

What do you look for to get sales and use tax refunds?

Firms often conduct a targeted review based on a company’s industry. However, this is not the most accurate approach for refunds. Your company should review all of its past purchases against tax laws to determine if there’s an applicable exemption.

How long does the sales tax audit review take to complete?

By using our proprietary, internal software, we are able to complete a review within 2 weeks after receiving all necessary data points.

Sales Tax FAQs

What is physical and economic nexus?

Nexus: A company’s connection to a state.

Physical Nexus is created when you have physical presence in a state. This could be employees, inventory, office locations, business activity at a conference, driving a truck through the state, etc.

Economic Nexus is generally reached when a company has $100,000 in revenue and/or 200 transactions in a state in a previous or current calendar year. However, these thresholds vary by state.

What is a sales tax nexus study?

A nexus study analyzes every aspect of your business activities to determine if, when, and where physical or economic nexus was created. These studies can shed light on your business’s tax requirements and help you discover ways to avoid costly tax penalties. Understanding where your company has nexus is the first step in the sales and use tax compliance journey.

Why should I conduct a nexus study?

A nexus study is valuable for new and established businesses alike. Laws change, and business activities evolve and develop. So, even if you’ve completed a nexus study in the past, an updated analysis can reveal whether you’re still compliant.

Contact a tax expert at PMBA to get started.

A state and local tax expert will conduct a comprehensive nexus study to determine if and why nexus is created.

Contact Us Online

How do I register for a sales tax license?

You can visit a state’s revenue department website for instructions. However, it is important to strategize where and when to register for sales tax. For example, if you have historical liability, registering too early could prevent you from utilizing a state’s Voluntary Disclosure Agreement program.

How do I register for a sales tax license?

You can visit a state’s revenue department website for instructions. However, it is important to strategize where and when to register for sales tax. For example, if you have historical liability, registering too early could prevent you from utilizing a state’s Voluntary Disclosure Agreement program.

What is a voluntary disclosure agreement?

A voluntary disclosure agreement is a deal made with a state to reduce past or current penalties as well as lessen the lookback period for taxes a business might owe.

Do international companies need to register for sales tax?

Yes, if they’ve established nexus.

What is an exemption certificate?

An exemption certificate is used when making a tax-exempt purchase. Exempt purchasers will present this form to the seller.

Do exemption certificates expire?

Some exemption certificates expire, and some do not. Each state has its own rules.

Download our Exemption Certificate Expiration Chart here.

When is a business exempt from sales tax?

A business can be exempt for a number of different reasons. There are product-based, location-based, use-based, and buyer-based exemptions.

What are resale certificates?

A resale certificate is collected by a seller and implies that the purchaser will report tax on the final sale of the item after reselling it.

What is a sales and use tax audit?

When a state reviews the accuracy of a business’s sales and use tax reporting during a selected period of time. The lookback period, or statute of limitations, varies by state.

What triggers a sales tax audit?

Rapid business growth, non-compliance, failure to file returns on time, past penalties, an ongoing audit.

How do I appeal a sales tax audit?

Formal appeal process or liability mitigation.

Contact us today for your complimentary 30-minute consultation where you’ll receive actionable steps you can implement immediately.

Contact Us Online

What should I expect from a sales tax audit?

At PMBA, our sales tax audit defense experts take the lead when it comes to your case. We act as your single point of contact and work directly with auditors, so you don’t have to.

Using state-of-the-art data analysis software, we dive into the details and review all documents the state auditors prepare, recomputing liability and assessment values for accuracy and completeness.

In addition, we look for areas where overpayments might exist to potentially offset liabilities.