With the COVID-19 pandemic impacting businesses across industries, this is an ideal time to look for other ways to find funds to be able to recover quickly and get business back to normal. One way to do that is through a sales and use tax review to find where the business may be overpaying tax and take the necessary steps to avoid overpaying in the future and to recover past overpayments.
What is a sales and use tax review?
A sales and use tax review can assure your business operations are in compliance, and that you are taking advantage of tax savings opportunities. The review provides companies with a benchmark of their current sales and use tax underpayment and overpayment status, as well as associated planning opportunities. State statutes and interpretations change on a continuous basis causing unexpected liability issues to arise and overpayment opportunities to be overlooked. These reviews help ensure businesses aren’t leaving money on the table when it comes to sales and use tax.
At a state level, Missouri made a recent law change extending the refund statute to 10 years instead of 3 years, making it a fantastic time to recover overpaid taxes from the past decade.
What documentation is needed for a sales and use tax review?
To fully understand a business’s tax payment and liability landscape, a sales and use tax review analyzes the following documentation:
- Sales and use tax returns and support documentation
- Capital and fixed asset purchase invoices
- General expense purchase invoices
- Chart of accounts
- Prior state sales and use tax audits
- Prior refund claim documentation
A sales and use tax review can help find overpayments to keep more money in your business’s pocket during this tough time. Contact an Anders advisor for more information on reverse audits or learn more about Anders State and Local Tax.All Insights