It is difficult to know where to start towards managing your exempt sales exposure and exemption certificate management process without gaining a granular understanding of where the exposure is and why it is occurring.
At GMG CERTifyTax we identify and quantify your current audit risk to devise an effective project plan to mitigate your sales tax exposure. We view exempt sales management as a critical element of your overall financial wellbeing and not merely an exercise in document storage. Our focus is on your bottom line not counting “good” or “bad” certificates.
As an example, we recently reduced a client’s $30 million dollar exposure by 84%.
Saving Money by Reducing Risk
Presently, companies first become aware of the sales tax exposure they have related to improperly documented exempt transactions upon a sales tax audit. Many times, the assessment is as a surprise to the companies, resulting in a negative impact on profit margins. Additionally, efforts to obtain the properly completed exemption certificate during the audit is a struggle because many transactions had occurred 3 years prior.
As states struggle to generate tax revenue to meet budget projections, we have observed that assessments related to improperly documented exempt transactions have increased. Obtaining certificates years after a transaction may prove to be more difficult than before given the current economic environment due to turnover or customers going out of business.
GMG CERTifyTax takes a proactive approach in keeping our clients informed as to the amount of current exposure while devising a plan to reduce the risk by obtaining valid exemption certificates. Our certificate acquisition campaigns are driven by data analytics to return the most value for our clients. Finally, we provide our clients with quarterly risk assessment analyses so that there are no surprises on audit or to your finance department.
Do you know your sales tax exposure related to exempt sales? If not, we can help with no commitment.
Call (914) 798-9990 to speak with our experts or request information from our sales team by completing the form below.