Retailer/Wholesaler Sales Tax Case Study

Before Sales Tax Specialists, Inc.’s Involvement

This client came to us after the initial sales tax audit work had been completed by the State Board of Equalization auditors. The client had already received the audit working papers and the standard Board of Equalization Report of Field Audit. This initial report showed additional taxable sales in excess of $4,000,000.00. These additional taxable sales were the result of the auditor disallowing claimed exempt sales such as sales for resale and sales in interstate commerce.

After Sales Tax Specialists, Inc.’s Involvement

Immediately upon being engaged to assist in this case, we noticed a potential exemption from tax that had not been considered by the client or by the Board of Equalization auditors. Through our research into this area of the law, and through our diligent work with our client in locating the proper supporting documentation, we were able to establish that the entire amount of additional taxable sales the auditor had established were actually legally exempt from any tax. As a result of the sales and use tax expertise of the consulting staff at Sales Tax Specialists, Inc., the Board of Equalization eliminated the entire amount of additional taxable sales, concluding that there was no additional tax due by our client. The expertise of Sales Tax Specialists, Inc. resulted in a savings to our client of almost $445,000.00 in tax, interest, and penalty.

We will also provide some very important details on how our clients can best protect their rights and interests as they continue to defend against the audit results.  This service is tailored towards the clients that prefer to consider handling the appeal of their audit on their own but would like to have the benefit of having our nearly 25 years of experience applied to their case in terms of having us provide some extremely helpful guidance.

Keeping in mind that sales tax audits are one of the biggest contributors to the State’s financial revenue, it is crucial that our clients not leave anything to chance in their audits.  In the vast majority of the sales and use tax audits that we come into contact with we are able to find areas that lead to significant  reductions in the audit.  This means that so many taxpayers are overpaying their taxes as a result of sales and use tax audits in California, and other states.  In our efforts in this service we strive to help our clients understand their audits more fully and thereby help them avoid paying sales tax, interest, and penalties in their audit that they do not owe.

Call us today and receive a free consultation about this service and a no hassle, no strings attached, all inclusive competitive price for our service in this area.  There is no risk and nothing to lose by checking it out.  There is a lot to risk by not checking into it.  Give us a call today at 877-777-5470 or 916-714-3600.

  Retailer/Wholesaler Sales Tax Case Study

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Don’t forget that if you get audited by the California Department of Tax and Fee Administration you have rights that need to be protected at all times.  Make sure you have someone in your corner that knows how to protect these rights and protect you and your company!  Sales Tax Specialists, Inc. is that company!

Example binder and checklist that could be used for a sales tax audit.