Before Sales Tax Specialists, Inc. Got Involved
This client came to us after the initial sales tax audit work had been completed by the State Board of Equalization auditors. The client had already received the audit working papers and the standard Board of Equalization Report of Field Audit. This initial report showed additional taxable sales in excess of $4,000,000.00. These additional taxable sales were the result of the auditor disallowing claimed exempt sales such as sales for resale and sales in interstate commerce.
After Sales Tax Specialists, Inc. Got Involved
Immediately upon being engaged to assist in this case, we noticed a potential exemption from tax that had not been considered by the client or by the California sales tax auditors. Due to our knowledge of this area of law, and through our diligent work with our client in locating proper supporting documentation, we established that the entire amount of additional taxable sales the auditor had established were legally exempt from any tax.
As a result of the sales and use tax expertise of the consulting staff at Sales Tax Specialists, Inc. the entire amount of additional taxable sales were eliminated , resulting in a savings to our client of almost $445,000.00 in tax, interest, and penalty.