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Tax Services

Sales & Use Tax Reverse Audit Services

Our Reverse Sales Tax Audit Services team identifies and refunds overpaid sales and use taxes, and helps you avoid overpayments in the future.

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Reverse Audits

Sales tax rates, rules, and regulations change often, and sales and use tax compliance varies greatly by state. Are you knowledgeable about the sales tax charges on services state-by-state?

It is important to your company operations and bottom line to uncover areas of overpayment, but it is a big challenge to find the time and expertise to address this issue on an ongoing basis. Our team of experienced professionals conducts reverse audits that take a deep dive into your transactions to identify where sales and use tax errors have occurred.

We determine and document how much tax you should be refunded, and we will handle all the work to get that money back.

Our sales tax reporting services can help you correctly apply tax rates. Most importantly, we will train your employees to better understand the sales and use tax laws and exemptions in the states you operate in to prevent costly mistakes going forward.

What Is a Reverse Sales Tax Audit?

A reverse audit helps your company recover “lost” tax dollars and offset audit assessments. Our goal is to not only help you achieve these short-term financial benefits but also improve decision-making processes that will maximize sales tax savings and minimize exposure long into the future.

The Phases of a Reverse Audit

Cherry Bekaert can perform an analysis of past company purchases to determine and recover erroneously paid taxes as well as other Sales & Use Tax Services. A Reverse Sales & Use Tax Audit may include the steps below:

Scoping & Analysis

During this phase, Cherry Bekaert may interview key personnel and analyze business activities, test current accounts payable and tax reporting systems, review recent and ongoing sales and use audits, and identify and quantify potential refund/credit opportunities.

Report of Findings

In this phase, Cherry Bekaert will perform a cost/benefit analysis to prioritize potential refunds and compile necessary documentation to support refund claims.

Training

We conduct a customized sales and use tax training addressing specific issues discovered during your review and explaining processes to simplify sales and use tax compliance.

View Our Training Program

Refund Processing

 The Refund Processing phase of a reverse audit focuses on recovering overpaid taxes or incorrect charges. It involves preparing and submitting claims to the Department of Revenue and vendors, ensuring compliance with regulations. Continuous assistance is provided, including acting as a liaison, tracking progress, and resolving issues. Monthly updates offer detailed reports on claim statuses and insights for improvement. This phase is essential for enhancing cash flow and maximizing recoveries.

Scoping & Analysis

During this phase, Cherry Bekaert may interview key personnel and analyze business activities, test current accounts payable and tax reporting systems, review recent and ongoing sales and use audits, and identify and quantify potential refund/credit opportunities.

Report of Findings

In this phase, Cherry Bekaert will perform a cost/benefit analysis to prioritize potential refunds and compile necessary documentation to support refund claims.

Training

We conduct a customized sales and use tax training addressing specific issues discovered during your review and explaining processes to simplify sales and use tax compliance.

View Our Training Program

Refund Processing

 The Refund Processing phase of a reverse audit focuses on recovering overpaid taxes or incorrect charges. It involves preparing and submitting claims to the Department of Revenue and vendors, ensuring compliance with regulations. Continuous assistance is provided, including acting as a liaison, tracking progress, and resolving issues. Monthly updates offer detailed reports on claim statuses and insights for improvement. This phase is essential for enhancing cash flow and maximizing recoveries.

Industry Highlight

How Can Manufacturers Get Overpaid Money Back and Start Taking Advantage of More Sales Tax Exemptions?

Manufacturers can significantly reduce tax bills through exemptions, but correctly applying sales and use tax laws is complex due to varying state regulations. This often leads to overpayment, exemption oversights, and underpayment risks. Inaccurate use tax accrual on inventory and incorrect vendor charges can result in costly penalties. Cherry Bekaert offers reverse audits to identify and refund overpaid taxes and helps prevent future overpayments.

Read More
“The firm handled our reverse audit in a professional manner. We appreciate the thorough review to identify tax savings both during the review period and in future periods. The experienced staff explained all potential savings identified and maintained a high level of transparency throughout the engagement.”
Food Manufacturer
Case Study

$200,000 Reduction of Audit Assessment for Manufacturer

Discover how a national plastic manufacturer qualified for multiple state tax exemptions after the Cherry Bekaert Sales & Use Tax Services team negotiated to reverse many of the auditor’s initial findings.

Read Story

Our Professionals

Connect With Us

Lauren Stinson

Sales & Use Tax Leader

Partner, Cherry Bekaert Advisory LLC

Chris Grimes

Sales & Use Tax Services

Director, Cherry Bekaert Advisory LLC

Chris Hempel

Sales & Use Tax Services

Director, Cherry Bekaert Advisory LLC

Contact Our Reverse Sales Tax Audit Team