Sales & Use Tax Services

Sales Tax Colorado offers high-quality, value-added Sales & Use Tax consulting services to businesses doing under $250,000 annually to Fortune 1000 companies with revenues in the billions. We identify and resolve Sales & Use Tax exposure and overpayment while implementing sound compliance procedures and legal tax reduction strategies. For example, our team of specialists provides Audit Advocacy to minimize assessments and to protect clients from unknowingly giving auditors too much information or power.

In cases of Sales & Use Tax exposure for companies not yet registered with or discovered by various states, we negotiate anonymous Voluntary Disclosure Agreements seeking to eliminate or reduce penalties and interest, and to resolve prior tax liability. Our Reverse Audit services can help clients discover and recover prior overpayments. This can generate cash refunds or credits plus future cost savings through the correction of past compliance errors.

We do not have a lot of direct experience in each of our service areas, but we are confident in our ability to apply our knowledge and related experience to serve clients well. Our fee structure reflects this so clients get the benefit of our specialized knowledge and services without paying the higher price of other more experienced firms. We involve others as needed. Our core services include:

Audit Assistance & Advocacy
Sales & Use Tax Diagnostic Review
Exposure Resolution
Sales Tax Planning
Refund Reviews / Claims

Please keep in mind, there are no “one size fits all” solutions. Careful evaluation of your particular situation, the dollar amount at stake, and the states involved is needed to find the best alternative or combination of alternatives to address your needs. The following is an overview of our Sales & Use Tax services:

Audit Assistance & Advocacy

Audit Defense – When Auditors Knock, We Answer!
We provide you with professional representation before state and local tax departments. Audit Assistance & Advocacy Our professionals represent you in what could otherwise be a more costly and time consuming audit. We respectfully but firmly deal with auditors through proactive approaches and knowledge of the law and your business. We do not presently have much direct audit defense experience, but we have been successful. Having professional representation alone is beneficial plus knowing what to prepare for can be invaluable. If we need to involve more experienced/ higher priced professionals, we will recommend such. >>> continue

Respond To Notices / Dispute Assessments – Been Assessed Or Notified! Now What?
Many times state tax departments send bills that are wrong or grossly overstate the amount owed. We can help resolve these notices and prevent you from paying money that you don’t owe.

Letter Ruling Requests – Uncertainty? In A Gray Area? Get A Binding Determination.
We can obtain from the various state tax departments binding letter rulings on how the tax law in a given state applies to a specific transaction or set of facts.

Refute Responsible Person Assessments – Should You Really Be On The Hook?
State tax departments are notorious for personally going after corporate officers, owners and employees for the corporation’s back taxes. We help dispute these Responsible Person Assessments.

Sales & Use Tax Diagnostic Review

Diagnostics Analysis – Hidden Areas Of Tax Exposure Or Overpayments? Sales & Use Tax Review
We will gain an understanding of your business, identify areas of Sales Tax exposure or potential risk, quantify such, and recommend solution alternatives. Such reviews are often called Operational Reviews or Compliance Reviews depending upon their nature and depth. Take our free survey to determine your Sales & Use Tax status.

Nexus Reviews – Growth & Expanding Operations? New Markets? More Liability!
We’ll conduct a Nexus Review of your business operations and activities to determine which states can require you to register and collect Sales Tax on their behalf. Where liabilities are discovered, we’ll advise you on the materiality and alternatives to best handle these matters with the various states involved.

Due Diligence – Purchasing Another Business? Don’t Get Caught Owing Their Taxes!
We analyze the books, records, and procedures of a target company to identify potentially undisclosed Sales & Use Tax liabilities, providing you with protection from successor liability and the leverage to renegotiate if needed. States often reject purchase contract language and require their own forms and procedures for transfer of prior liability. Even the best attorney-prepared contract can be meaningless in protecting the purchaser from inheriting the seller’s prior Sales & Use Tax liabilities. We assist in identifying and properly complying with state requirements to avoid assumption of prior Sales Tax liabilities. >>> continue

Exposure Resolution

Voluntary Disclosure Agreements – At Risk? Act First And Benefit.
If your company has not registered, been contacted, or filed Sales & Use Tax returns with a given state for prior periods, and you have Sales Tax exposure, there are ways to resolve or minimize prior Sales & Use Tax liabilities. Most states will allow us to negotiate on your behalf while you remain anonymous. This often results in a significant reduction of liabilities through limiting the look-back period, abatement of penalties, and reduction or elimination of interest assessments. In addition to negotiated agreements there are other registration alternatives designed to minimize prospective exposure.

Streamlined Sales Tax Agreement (SST) – What Is It? Can You Benefit?
The Streamline Sales Tax (“SST”) is an initiative undertaken by many states for the purpose of trying to reduce the administrative work and expense businesses incur complying with state and local Sales & Use Tax laws. Upon becoming members, SST member states are required to offer full amnesty for a period of one year in exchange for voluntary SST registration. However, SST registration can significantly increase your multistate compliance responsibilities. Also, some of the SST member state amnesty periods have expired. Accordingly, a careful cost/benefit analysis should be performed before registering under the SST. We assist clients in evaluating whether SST registration is right for them.

Penalty / Interest Abatements – Challenging Assessments Can Payoff.
If your company is already registered in a state and Voluntary Disclosure Agreements do not apply, there still may be some viable alternatives available to limit interest or penalties that are typically added to a tax assessment by state tax departments. We will work with your company and the state to get penalties and interest charges waived or reduced.

Offers-In-Compromise – Unreasonable Or Unaffordable Assessment?
If you cannot afford to pay an outstanding tax liability, state tax departments typically have programs that may allow you to resolve your debts and make a clean start. We can advocate your eligibility for these programs. >>> continue

Sales Tax Planning And Consultation

Sales Tax Colorado provides technical direction to assist in determining how the Sales & Use Tax laws apply to your specific business. We can also do an in-depth evaluation of your current and potential future business activities to provide alternatives that may position your business to take advantage of exemptions or to derive a future Sales or Use Tax benefit. This planning can include options such as restructuring an entity or transaction to legally qualify for Sales or Use tax exemptions or exclusions. We will advise you of ways to legally reduce the amount of tax due on a transaction or ways of saving your tax dollars.

Corporate Startup / Expansion Consulting – New? – Got Sales Tax Covered? Growing? – Keep Up On Registrations, Taxability And Exemptions.
Sales Tax issues affect personnel in Accounting, Accounts Receivable, Accounts Payable, Billing, IT, Purchasing, Tax and various other departments. A proper understanding of Sales & Use Tax laws and the associated procedures will help ensure the business’ success and minimization of the compliance burden.

New markets, products or services raise taxability and nexus issues, as well as additional collection requirements. In today’s world of inconsistent, constantly changing Sales Tax laws and aggressive states trying to fill their revenue coffers, businesses simply cannot afford to rely on the status quo. Sales Tax Colorado can keep a new or expanding business in compliance and ensure they only collect and pay Sales & Use Tax when warranted.

Resale And Exemption Certificate Consulting – Get A Handle On This Important Area.
“It’s taxable unless proven otherwise.” This is heard all too often. The burden is on business not only to receive properly completed exemptions certificates, but to maintain and be able to retrieve them years later.

When auditors review your invoices and purchases, they’ll require supporting documentation when tax wasn’t charged or paid. If your customer was exempt, but you can’t retrieve the certificate to prove it, you could owe the tax plus penalties and interest! The large volume of certificates to be managed by some businesses can be overwhelming.

Our professionals will review and test your procedures and recommend appropriate solutions to ensure your protection.

Taxability Matrices And Technical Memoranda – Don’t Over Collect Or Remit. Know What’s Taxable!
We will develop tax matrices and/or procedures to enable your personnel to make proper taxability decisions. This may also uncover compliance areas where over or underpayments have occurred and a prior liability or refund opportunity exists. The matrices can be used in quantifying any prior tax liabilities and/or overpayments. We can provide clarity with respect to taxability issues that may be difficult to abstract from regulations and prior court rulings. When needed, we can seek binding interpretation directly from the state based upon your specific circumstances.

Compliance Software Solutions – Is Automation Right For You?
Sales growth, new geographic markets, or an increase in products and services often trigger consideration of automating some or all of the compliance functions. This can include determining taxability and correct tax rates to charge, managing exemption certificates, completing required returns, etc.

The investment in the software can be significant even before integrating it and involving your IT, Accounting, Tax and other personnel. Making the wrong choice can easily turn the investment into a costly mistake.

Call on us for help determining what level of automation you need and which vendor’s products are right for you.

Large Transaction Structuring & Consulting – Don’t Over Pay Taxes!
When the stakes are high, our professionals can often recommend proven strategies to eliminate taxability of a transaction or to defer the taxes over time. Deferrals allow the purchaser to sell the asset later having only paid a portion of the Sales or Use Tax otherwise due.

Outsourcing & Automation Consulting – Is Doing It All In-House The Best Option? Want More Time For Your Core Business?
Outsourcing is commonplace in today’s world of business. Reducing or eliminating non-core activities allows personnel to focus on the critical success factors driving your business. Sales Tax compliance such as return preparation and filing can be a great candidate for outsourcing.

Some firms want to continue handling some or all of their Sales Tax compliance internally, but do not possess the correct tools. Our specialists can help determine if automation or full or partial outsourcing is the right solution for you. We’ll also help ensure the vendor providing the desired solutions is a good fit for your needs and systems. >>> continue

Refund Reviews / Claims

Refund Review / Reverse Audits – Missing Exemptions? Overpaying? Get it Back!
Many companies unknowingly overpay their taxes. By understanding your process and reviewing your records, we can help you identify exemptions or overpayment errors, obtain a refund of these taxes, and help avoid future overpayments. Such refunds are often overlooked by state auditors, but when discovered by our professionals, they can partially offset or sometimes turn an assessment into a net refund. >>> continue