Services

Although best practices dictate that we are involved at the onset of audit, once the audit notice is received, we can assist at any time of the audit process. Some key aspects of successfully defending and resolving an audit include: Preparation (understand changes during the audit period, prior audits, data available); Opening conference, addressing at a minimum, logistics, records availability, points of contact, anticipated timelines, scope, and sampling; Ensuring any samples are representative and applied to the correct population; Understanding information requests/how to respond to the auditor; Reviewing workpapers; Understanding taxpayer options for closing/paying/protesting the audit; Making improvements to ensure limiting any future issues that may have been discovered during the audit.

Identifying a tax overpayment is just the beginning of a recovery review.  Understanding the basis for the overpayment, gathering support for a claim, identifying potential underpayments, and discussing the best path forward, and recommending process improvements to reduce future overpayments are all part of the tax recovery service we provide.

Understanding the thresholds and requirements imposed by tax jurisdictions for registration, collection and filing sales and use taxes, was often difficult before jurisdictions began adding economic thresholds.  In addition, new regulations related to Marketplace sellers and facilitators adds to the complexity of tax compliance. Asking the right questions regarding your business activities provides a true picture of your current and past nexus footprint.  A&M works with you to develop these questions, identify potential gaps in sales and use tax compliance, provides a summary of findings to assist in developing a plan to move forward

With a review of locations; activities; products and services; purchases, sales, and invoices; system set-ups and exemptions; we identify potential sales and use tax exposure; recommend and discuss options to remediate any exposure; and assist with the execution of the chosen option.

Once a potential tax exposure is identified, a voluntary disclosure agreement may be an option to become compliant with a tax jurisdiction. Some benefits of an agreement include, limiting lookback periods, waiving penalty and, in limited instances, interest. We negotiate the agreements with the tax jurisdictions, prepare documentation required, work with you to ensure payments are properly applied and that you have what you need to move forward.

Whether new to a tax jurisdiction due to a merger, business expansion or as a requirement of a voluntary disclosure agreement, we can help prepare and submit the applicable state and local tax registration applications and secure the tax registrations needed to keep your company in compliance.

Does the taxing jurisdiction deem it to be tangible personal property, a digital good, telecommunications or a service?  Are there applicable exemptions? Does the tax imposed by a local jurisdiction differ from that by the state? Whether you are purchasing, selling, licensing, or providing a service, these are some of the questions that we can help answer so that you have the information needed to correctly pay or collect tax.

To properly set up your systems or train employees reviewing purchase or sales transactions, an understanding of how the various tax jurisdictions categorize and tax a product or service is essential.  Information services, cloud or software offerings, freight, fees, and services are just a few of the topics that vary greatly among tax jurisdictions that we can help you navigate.

Having formal sales and use taxability matrices tailored to your business and which are easy to follow by various functions in your company, ensures a greater understanding of costs for budgeting, bidding on projects, evaluating suppliers, and overall tax compliance.

There are approximately 11,000 taxing jurisdictions in the US, with many localities imposing some type of tax, even when a state tax does not apply to a transaction. Properly setting up your system, timely receiving and applying rate changes, issuing tax credits at the correct rate, and understanding other jurisdiction-specific rules are essential to compliance, limiting issues under audit, and, keeping customers happy.

Understanding tasks and processes performed day-to-day by employees is key to ensuring management expectations are met. Evaluating if company standard sales and use tax processes are being adhered to helps to correct potential issues and/or streamline processes as soon as possible. Having detailed formal documentation for processes related to customer onboarding and exemption certificate management, new product and service set up, tax rate updates and calculation, use tax determination, issuing customer tax credits, tax return support preparation and payments is best practice to help to support tax audits and ensure seamless onboarding or transitioning during employee leaves or changes.

We prepare relevant trainings for your company and, once approved by you, present them at your convenience to the appropriate audiences in person or via the internet.

Having valid documentation supporting exempt or non-taxable resale transactions on file prior to the start of an audit can help ensure a smoother and quicker audit. Best practice is to not only have processes in place to collect, review and store exemption documentation but to know when to request updated certificates. We can review current documentation; work with you to implement processes to collect and maintain certificates; and train personnel to ensure the processes are utilized going forward.

A new business venture, a new product or service offering, application of a new regulation or statute to your business, or support of a position for a future tax audit may be reasons for requesting a letter ruling.  Letter rulings allow a taxpayer to obtain feedback from a tax jurisdiction when there is no relevant precedent that addresses your specific situation or transaction. A&M works with you to gather the relevant business information, prepares the letter ruling request, communicates with the taxing jurisdiction, and assists your company to develop a plan of action based on the issued ruling.

Some tax jurisdictions require an application and certification prior to utilizing a manufacturing exemption, such as in Tennessee; or a pollution control exemption, such as in Michigan.  Staying on top of available exemptions, continuing certificate application and maintenance, and proper utilization may be overlooked in the day-to-day operations of the business which may leave money on the table.  In reviewing operations and locations, we can identify applicable exemptions, prepare applications, and create processes to ensure continued utilization, where appropriate.