Sales & Use Tax
Nearly every transaction of goods and many service transactions come with an added charge for sales or use taxes. The tax rates can be as high as 10%. Each individual and every business—large or small—must consider the taxability of everything that is sold, bought, given away and/or consumed.
For businesses, overpayments of sales and use taxes are above-the-line costs, unduly burdening EBITDA and impacting earnings per share. Efficiently managing these costs aligns with effective financial management of the business, and can save significant time and money. Our experienced state and local tax professionals work with every aspect of sales and use tax and can help you make sense of the obligations and opportunities. Our services include the following:
Sales and Use Tax Process Review/Automation
Andersen Tax can assist clients with reviewing their tax compliance processes to identify opportunities to enhance, streamline and automate the sales and use tax function. Our experience in process re-engineering and tax technology can improve processes, strengthen internal controls and reduce the cost of compliance.
Sales and Use Tax Compliance Outsourcing
Andersen Tax provides full service, outsourced sales and use tax compliance services. Andersen Tax focuses on identifying and adopting best practice methodologies specifically suited to our clients’ business activities. Outsourcing sales and use tax compliance relieves clients of the burden of deadlines, and lowers the costs in terms of compensation, benefits, training, administration and licensing/maintenance of tax preparation software.
Audit Defense Services
State and local tax authorities are becoming very creative and aggressive in their audits of business taxpayers. Auditors often overlook credit items and assess tax on transactions that may not be taxable based on use or interpretation. Andersen Tax can assist clients in managing an audit from start to finish. Andersen Tax has extensive experience representing clients and our credibility and tax knowledge allow us to obtain the best possible results.
Sales tax is frequently paid on exempt items, either to the supplier or to the state, where a legal exemption is available. We can assist clients by performing a review of their purchases to identify potential refunds of sales and use taxes. During a review of the capital assets and supply purchases, we typically identify overpayments in a variety of areas and have been successful in assisting clients with obtaining refunds of overpaid taxes.
Airplanes, Artwork, Antiques and Automobiles
Certain types of property are usual suspects for state use tax collectors. Large dollar items bought at auctions, brought through customs, or having mobility are targets for audits. Andersen Tax works with consumers of such items, both businesses and individuals, navigating the rules to comply with and minimize state use tax obligations related to these items.
Nexus Study/Voluntary Disclosure/Amnesty
As companies expand operations across state lines, or engage in acquisitions of existing companies and business operations, they face questions about physical presence and resulting nexus issues. Andersen Tax can assist clients in determining past SALT exposure where they may have nexus, and negotiate on an anonymous basis to minimize interest, penalties and deficiency look-back period through voluntary disclosure and amnesty agreements.
Other Sales and Use Tax Services
In addition to the services noted above, Andersen Tax has the knowledge and experience to assist clients with the following areas:
- Sarbanes Oxley compliance (documentation, testing, remediation)
- M&A (diligence readiness, tax due diligence, deal considerations, post-transaction integration)
- Tax process improvement (tax variance analysis, formula use tax reporting, etc.)
- Managed audits
- Transactional analysis/tax determination
- Exemption certificate management/automation
Amended Unclaimed Property Voluntary Disclosure Program
Navigating the Medical Device Excise Tax Provisions
Illinois Aggressively Collecting Taxes on Out-of-State Purchases