Should the state auditor who recently performed an audit of our company have given us credit for any overpayments of tax our company made during the audit period?

Theoretically, yes; but in all likelihood the auditor probably did not. Auditors usually give credit for a few de minimis items, but generally they do not look at the transactions to identify refund opportunities for your company. If you have recently been through a state audit, it is an ideal time to do an internal review or bring in a Sales & Use Tax consulting firm to review the audit and your other records to look for refund opportunities.

If I file a refund request, will it trigger an audit?

No, it will not necessarily trigger a full audit of your company. Frequently, the state will ONLY audit the records submitted with the refund request and will not perform a complete audit of your records. Regardless, if you are due a refund an audit is nothing to fear, however, prior to filing any refund requests with the state, you should look for possible liabilities and tailor your approach based on the specific circumstances.

Will this sales tax reverse audit project be worthwhile for my company?

Of all the firms we have reviewed, we have yet to find one where we were unable to deliver any savings.  It is possible that your company could be the first.  While we cannot guarantee we will find savings, by engaging Agile Consulting Group you gain confirmation and will have complete confidence that your company is maximizing the benefit of any available exemptions.  Furthermore, we typically sign contingency-based contracts which take all risk out of the equation for our clients.  If we do not deliver savings, our client is under no obligation to compensate Agile Consulting Group.  This eliminates the possibility of racking up substantial consulting bills that produce little or no client value.

If we use another sales tax consultant, shouldn't we be in good shape in this area?

We make our living off secondary reviews.  Over 90% of our clients have had some type of prior review.  If you’re been using the same sales tax consultant for several years, it makes sense to bring in someone new to see what additional savings can be found.  Different sales tax consultants have different strengths. It’s possible that we have something we’d focus on in our review that is something the other provider passed on.

If I perform the review myself rather than hiring a consultant, won't I receive a larger refund since I will not have to pay the consultant's fees?

Generally speaking, a good consultant will identify more refund opportunites than if you were to perform the review with your in-house staff because of the familiarity a consultant has pursuing these refunds on a daily basis. Even net of the consultants fees you should receive a larger refund.

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