Blog authored by Scott Schwertner, National Director of Sales and Use Tax for Invoke Tax Partners. 

With extensive experience in both the industry and sales tax consulting side, Invoke Tax Partners National Director of Sales and Use Tax, Scott Schwertner, knows how difficult it can be for businesses to get sales tax right on every transaction. It is common for businesses across the United States to pay sales tax and accrue use tax on purchases that are not taxable, resulting in an unnecessary hit to their bottom lines each year. Businesses often struggle to keep up with and take full advantage of the available exemptions for their industry or state. Even those with a sophisticated tax matrix can have errors within, mis-code transactions, or not have the time to analyze the volume of transactions being run through the tax matrix. Periodically reviewing these purchase activities can often identify significant refund opportunities for businesses.

Some of the benefits of an overpayment review are listed below:

  1. Recover Taxes Paid in Error Tax savings recovered can be significant and make a difference in a company’s bottom line. 
  2. Correct Any Potential Exposure – During an overpayment review, it’s also important to review non-taxed transactions for potential exposure as well.
  3. Contingency Fee Structure – Most overpayment reviews are done on a contingency basis, so there is no upfront expense and the consultant’s costs are paid with the tax savings obtained
  4. Matrix and Process Corrections – The findings of the overpayment review are used to correct any potential errors identified in both the tax matrix and the overall tax processing procedures.
  5. Implementing Best Practices and Training of Staff – A post-review training of staff engaged in the sales and use tax process and implementing industry standard best practices can have a significant impact on preventing errors going forward. 

If you have undergone changes in your Accounts Payable personnel, installed a new ERP system, implemented a new tax matrix, completed an acquisition, had a recent increase in tax accruals, or just want confirmation you are only paying what is legally due, a sales and use tax overpayment review should be considered. 

If you’re looking for help in how to get started with this review, get in touch with Invoke Tax Partners. If exposure is found and you’re looking to find news ways to manage sales tax so you don’t experience these issues, get in touch with TaxConnex!

Scott Schwertner

Written by Scott Schwertner

National Director of Sales and Use Tax for Invoke Tax Partners.