Being able to understand the detail operations and accounting of a business can be a great asset in reviewing and reducing assessments for state and local sales tax. In some instances, tax auditors do not take the time to analyze the particulars of monthly activities which lead to erroneous sales tax assessments. I have been very successful in drastically reducing the original assessment in numerous industries-several examples:
- Oil field equipment rental organization-I reduced a $475K OK sales tax liability by over $250K (50%+) thru detailed analysis of rentals locations and in addition, secured a waiver of 50% of penalties and interest
- Oil field equipment provider and servicing operations-I reduced the original $300K+ sales tax assessment to $40K thru detailed reconciliation of the monthly sales reports-the auditor had neglected this step. I was also able to secure a waiver of 50% of the penalties and interest.
- Restaurants-I reduced two assessments in this arena-I secured the reduction of a $135K assessment to $35K and another of $13K to 3K. Both were accomplished by a detailed analysis of the liquor sales and reconciliation of same back to the vendor invoices. I was also able to secure a reduction in the penalties and interest.
- Landscaping service-I reduced the original assessment of $15K to $4K by proving a number of the sales were non-taxable (services and exempt organizations) and secured waiver of 50% of penalties and interest.