Are You Currently Under Audit?

• - There's a good chance we can reduce or eliminate your audit.
• - There's no cost for us to conduct an initial review of your sales tax audit, and
• - We don't get paid unless and until you get a refund or reduction to your sales tax audit.

State Budgets & Revenues

Faced with budget cuts and deficiencies, states are becoming more aggressive and creative than ever in collecting tax. We've noticed an increase in changes to state law, limiting exemptions, increasing rates and expanding liability. But that doesn't mean you have to pay more than what your required. Problem is, companies do it all the time because they don't stay abreast of sales tax changes.

We understand what a state sales tax audit can do to your life. Not only does it costs you in actual dollars and cents, but the additional stress and time spent is considerable.

So, we'd like to share some information that may lower your level of stress. On average, only about 61% of audited taxpayers end up with a deficiency. And the biggest surprise, even with the one-sided process the auditor's use, almost 14% of audited taxpayers actually end up with a refund when all is said and done.

The Auditor's Mindset

This shouldn't be surprising - an auditor's main objective is to find money for the state. The look in areas where you haven't paid or collected sales tax. Auditors do not look for refunds. They award credits if uncovered, but they don't go seeking for them.

Auditors are not measured by how fair and balanced their audits are but by how efficient they are at bringing in the most dollars to the state. Don't misunderstand: they do want to be fair and accurate and educate business on sales tax. But they don't look equally for both tax due and refunds.

Vague State Sales Tax Law

State sales tax law is very general in its design. It's that way on purpose. Not every possible situation can been evaluated and considered by lawmakers and policymakers. In fact, it's not at all unusual for the auditor to misinterpret the application of the law to your specific situation. An auditor would need to spend hours and hours each week to stay abreast of the many letter rulings, court cases, and law changes that make a difference in the interpretation and application of the law to each individual situation.

This results is many state sales tax audits are overstated.

The State Pursues The Buyer and The Seller

That's right. In most states, auditors review both your sales as well as your purchases. If you failed to collect the proper sales tax on a taxable sales, they assess you. If you fail to pay sales tax on a taxable purchases, they assess you. That seems entirely appropriate to most people. However, the problem arises in situations where the state also conducts audits on your customers and on your vendors. In the worst case, every transaction gets taxed twice. This doesn't happen all of the time, but it does happen routinely.

So what's the bottom line?

PJCo has been involved in thousands of sales tax audits. In addition we read every letter ruling, court case, judgment and law change that applies to your situation in order to make sure you only pay what you truly owe.

We can help you plan. We can estimate your exposure. We can analyze sampling methods, test periods and establish guidelines for the auditor to follow. We monitor the audit progress so that your tax or accounting department can focus on issues that are more productive.

Because of our experience, knowledge, and familiarity with state auditing procedures, we will help you minimize sales and use, and franchise tax audit assessments. Our work will help you reduce business interruption and ensure the most favorable results possible. We can identify issues that can be appropriately protested, file administrative appeals on your behalf, and represent you in disputes before the taxing authorities.

Our findings and recommendations will provide you with a plan of action to minimize the audit assessment for your company. We're not saying, "You MUST HAVE our help to get through your audit." It's possible you may not need any help from us.

We are saying this: "Experience, evaluate, and educate yourself on the audit process and decide what's best for you. If you run into trouble or want a second opinion on what to do, we're here for you."

Check out our Client List for other companies we've helped.

Getting Started Is Easy:

1st Have one of our experts review your audit work papers. There's no cost or commitment on your part for us to do this quick review.

2nd After we conduct the review, if we believe that we can help, we will discuss your options for our involvement.

3rd We then schedule a time to review your files. All you do is show us to the files and we will stay out of your way. There's usually nothing else for you to do.

Fax To: 1-469-517-0685
Attention: Audit Assessment Review

Click here for more contact info.

The Situation: A building systems manufacturer was audited by the state and faced a considerable liability.

The PJCo Result: The end result was not only a complete wash of the liability, along with the associated penalty and interest, but also a significant refund due to the efforts of Peisner Johnson. Then, a subsequent review captured another considerable refund for the client in another area.

Quote: "We appreciate your expertise and the professional manner in which you represented our company with the State and our vendors."

The Situation: A large healthcare corporation was inundated with sales tax audits in multiple states. They wanted a third party to help them work their audits to completion without adding headcount.

The PJCo Result: Saved them a staggering $7 Million on one sales tax audit and turned a $2.9 Million audit into a refund of over $500,000.

Quote: "While many other A/P review firms have someone on their staff that has some background in sales tax, they simply are not experts in working sales tax audits. We don't want to use anybody but experts who do this type of work 100% of the time. Peisner Johnson is the expert."

The Situation: A division of one of the largest telecommunications companies in the U.S. faced a state tax audit assessment of over $5 Million in tax, penalty and interest. Their internal tax department had worked the audit down substantially, but had run out of time and people to look for any more reductions.

The PJCo Result: In a limited amount of time - two weeks - were able to locate and gather the necessary information and documentation to support findings that resulted in a $2.1 Million reduction.

Quote: "Two weeks of having you involved meant an extra 40% reduction. Wow!"

The Situation: A medium-sized manufacturer of camera's and related production equipment was assessed nearly $200,000 by the state of Texas.

The PJCo Result: A Re-determination & Statement of Grounds was filed because there was some question as to the way the specific law was interpreted. After a binder of certificates was presented to the auditor, the entire assessment was wiped clean.

Quote: "It's still hard to believe. From a $177,566 audit assessment to the auditor deciding to amend the audit to no tax due."

"Our company was exposed to a state sales tax audit that left us facing a considerable liability. The end effect was not only a wash of the liability, along with the associated penalty and interest, but our company realized a significant refund due to the efforts of Peisner Johnson. Then you performed a historical review wherein you captured another considerable refund for us. We appreciate your expertise and the professional manner in which you represented our company with the State and our vendors."

Roger Elms
Controller
NCI Building Systems