CliftonLarsonAllen (CLA) can help you identify sales tax exemptions and overpayments.
A reverse sales tax audit is a detailed review of business operations that may result in sales tax refunds and savings.
Exemptions vary by state and are subject to frequent legislative changes and department of revenue interpretation, which makes ongoing compliance difficult.
Our process includes
- Developing an understanding of the manufacturing process, including a plant tour and discussion with key employees
- Reviewing accounts payable records, invoices, and use tax accruals
- Presenting identified exemption areas and recommending next steps
- Compiling required documentation for submission of refund claim
- Communicating with the state to drive the refund approval process
- Providing training to help foster future savings and compliance
The reverse audit deepens our understanding of your business operations, internal procedures, controls, and systems, so we can offer recommendations to improve your operational efficiency.
- Provides documentation to pursue refunds or credits for overpaid sales and use tax (e.g., on utilities)
- Opens communication with CLA as an ongoing resource for sales tax questions
- Identifies potential areas of exposure or overpayment
- Integrates sales and use tax training tailored to your personnel, industry, and business activities
- Fees may be findings-based (contingent) or hourly.
- The contingent rate varies depending on the complexity of your business.