What Is A Reverse Sales & Use Tax Audit?
A reverse sales and use tax audit is the process of reviewing previous years of purchase data in an effort to find erroneous sales or use tax charges or accruals. Generally, these errors are due to a misapplication of tax laws by the seller or an oversight of an exemption provided by the state.
Why Conduct These Audits?
The benefits of a recovery audit extend far beyond recovered profits.
Your business will be able to:
- Identify broken processes or exposure zones leading to lost revenue.
- Mitigate future exposures resulting in more cash flow.
- Determine what exemptions are not being utilized and provide vendors with applicable certificates.
- Analyze purchases prior to your next audit.
How It Works
Most firms try to find transactions that fit specific exemptions; at PMBA, we review ALL of the transactions with sales & use tax and research every possible exemption that could apply. By leveraging over 25 years of knowledge and experience, we help you achieve maximum results.
Backed by our powerful software and extensive database of over 100K vendors, we can process more data, allowing us to secure overpayments that other firms have overlooked in a shorter amount of time.
The result: Save on your internal resources and recover the maximum recovery possible.
Using our exclusive Business Asset Recovery Tool, we can:
Identify Sales Tax Overpayments
Our database of over 100,000 vendors will help you identify sales tax errors.
Identify Use Tax Errors
Self-accruing tax has a very high error rate; our software will uncover these errors.
Establish Process Improvements
The results captured are available to your corporate finance team for various reporting purposes.
Provide an Internal Resource Tool
Our recovery audit team will retrieve your vendor statements, and analyze them to find open credits, duplicates, and other errors.
Produce Audit Defense Analytics
The data captured can be used to analyze your purchases prior to your next audit to identify potential exposure zones.
Over the past 25 years, our professionals have identified, documented, and recovered over $300M in overpaid sales & use tax for our clients. These results cut across all industries and company sizes including many Fortune 1000 clients and middle-market businesses.
- $6M Technology Manufacturer
- $500M Fashion Retailer
- $1B Shoe Retailer
- $10B Dental Distribution
- $500M Hospitality Retailer
Sales Tax Recovery
PMBA is a trusted provider of specialty tax services. With over 25 years of experience, PMBA delivers exceptional and innovative services including – but not limited to – Federal and State Tax Advisory Services, Software Implementation, and Asset Recovery. PMBA’s well-rounded team of “Big 4” alumni and tax professionals are dedicated to bringing seamless solutions so businesses can rest assured that their most complex tax challenges are in good hands.