Sales & Use Tax Incentives
Nationwide experience informs our state by state focus.
"TCC's thorough approach saved us over $4 million in indirect tax." - Senior Director, Tax, Fortune 100 Retailer
Cutting Edge of Tax Consulting
TCC invests in gaining an intimate understanding of how our clients create and deliver their products and services. Understanding the nuances of how a business operates reveals overlooked areas of indirect tax savings. TCC’s insight often reveals new applications of existing SUT exemptions. In some cases, this has led to private letter rulings by the local taxing authorities.
Honing in on material value
TCC’s nationwide experience has built up an extensive knowledge base. We leverage that to identify and deliver state-specific exemptions with material value. As a proof or concept, TCC provides a complimentary estimate of the value utilizing sample data. Opportunities can then be ranked according to benefit, risk and required resources.
Whether we’re exploring a nationwide reverse audit, or a state-specific opportunity, TCC begins our process by preparing an estimate of the expected benefit. Using a sampling of invoices, fixed asset data, use tax accruals, chart of accounts and sales tax returns, we dive into the data. We’re thorough without burdening our clients with onerous data requests and follow up tasks. Once delivered, we take a collaborative approach with tax authorities in defending our claims.
Unlocking Material Value
Where do the opportunities lie? Considerations for software related exemptions include how the product was downloaded and whether the product was modified, customized or used “off the shelf.” Investments in equipment used in a manufacturing and/or R&D process can also merit exemptions. Retail and Food Service businesses with large footprints profit from an approach that accounts for vendor turnover and for the evolving complexities of each state’s compliance requirements.
Maximizing the available SUT exemptions can unlock cash trapped in overpayments and increase profitability. As your collaborative partner, TCC works with tax, finance, accounts payable/receivable, IT, and purchasing to impart best practices for optimal compliance and maximum benefit. We train your staff regarding what to look for, where to validate assumptions and how to identify risk. When an audit occurs, TCC is there to provide support and take on the full burden of defending your benefit.
The amount of data and documentation involved in SUT exemption claims can be arduous. TCC takes that burden on ourselves, managing the document gathering, conducting site visits and following up with taxing authorities. Our team includes former state auditors, engineers and statisticians – all of whom contribute to a well-supported deliverable. TCC has the experience to identify the real issues and help our clients create a sustainable, repeatable, scalable process going forward.