Alvarez & Marsal

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Sales and Use and Transaction Tax Services

Our Sales and Use and Transaction Tax professionals use proven methodologies and state-of-the-art technology to identify and implement plans to help our clients reduce their transaction tax burden and to improve the overall efficiency of the transaction tax function. These services focus on the performance of people, operations, systems and administrative support of the transaction tax function. Our services include:

Reverse Audits

Most taxing authority auditors focus on identifying underpayments of transaction taxes. Our professionals identify instances in which our clients have overpaid sales and use taxes, and assist them in obtaining refunds from the tax authorities. Benefits of a reverse audit include increased cash flow, efficiencies from improved compliance processes, and reduction of penalties and interest.

Audit Management and Defense

We assist our clients with all aspects of an audit, from discreet audit support to full audit management and identify opportunities to reduce the audit assessment.

Control Audits

Our professionals may assist clients related to a transaction tax audit and actually perform the audit on behalf of the taxing authority. In this case, the taxing authority’s responsibility is to verify the audit results. In these situations, most states will waive all or part of the penalties and possibly interest associated with the audit assessment.

Process Review

Our professionals bring specialized expertise to assist clients with integrating their overall tax strategy with the day-to-day execution of the transaction tax function. People, process and technology are the foundation of an efficient operation, and the tax function does not operate effectively if all aspects are not optimized. We perform an in-depth analysis of the transaction tax function and leverage our experience reviewing similar processes and systems to identify and implement process improvements.

Accounts Payable Review

Accounts Payable Reviews identify excessive and erroneous payments made to suppliers (e.g., duplicated payments, unused supplier discounts, unclaimed receivable balances). We use leading edge technology specifically designed to identify overpayments in order to analyze accounts payable data and recover lost revenue.

Taxability Studies

We assist our clients by performing studies on the taxability of their products or services and provide research assistance on a specific transaction or set of transactions.

Percentage Based Compliance Reporting

Utilizing advanced sampling methodology, we determine a taxability percentage to be used in preparing use/direct pay tax returns on a “going forward” basis. This methodology replaces the burden of determining the appropriate tax to be paid on each individual purchase invoice. This compliance method results in reduced record keeping and compliance burdens, improved use tax compliance reliability, reduced taxing authority field work, and reduced client time spent with taxing authorities.

Voluntary Disclosure and Tax Amnesty Programs

Voluntary Disclosure and Tax Amnesty programs are a means by which deficiencies in sales and use tax returns can be corrected. On our clients’ behalf, we initiate discussions with the tax authority and assist in completing the requisite applications and compliance associated with voluntary disclosure and tax amnesty programs. Most taxing authorities will offer a full or partial waiver of penalty and/or interest to taxpayers offering to comply on a voluntary basis.

Sarbanes-Oxley 404 Compliance

We bring our experience to assist our clients with documenting transaction tax processes and identifying controls, as well as performing pre-testing associated with 404 requirements.