Sales and use tax represent intricate facets of taxation, posing a daunting challenge, particularly for nascent businesses. 

The complexity is heightened for e-commerce enterprises navigating operations across multiple countries. 

The recently implemented economic nexus laws resulting from the Supreme Court decision in South Dakota v. Wayfair have significantly altered compliance guidelines. This ruling underscores the imperative and strong recommendation for professional assistance. The absence of expertise in online sales tax, business taxation audits, as dictated by these changes, can lead to potential issues in the form of penalties and fines. 

The fact is, many businesses overpay their sales and use taxes. Forbes says 93% of business owners overpay their taxes. 

American First offers its clients assistance in minimizing the risk of overpayment in sales taxation and alleviating the stress associated with undergoing a sales tax audit. While certain companies deliberately err on the side of caution to reduce the risk of underpayment, others may be unaware of potential overpayments. Tight deadlines, intricate regulations, and conflicting guidance from taxing authorities can contribute to legitimate errors in the reporting, calculation, and payment of sales and use taxes. 

When miscalculations in sales tax computations arise, they lead to the underpayment of sales and use taxes, prompting businesses to face tax assessments that require repayment of the discrepancies. Depending on the laws and regulations enforced by the tax authority, these assessments may encompass back taxes, interest, and penalties claimed by the business. Regrettably, numerous state and local governments have adopted an assertive approach to tax enforcement, incorporating sales and use tax audits for businesses accused of sales tax discrepancies. 

American First offers expert assistance in sales tax audit representation and compliance reviews, aiding businesses confronting a sales tax audit or other sales tax disputes with state or local tax authorities. Leveraging our extensive experience across various industries and sectors, coupled with a profound real-world comprehension of tax policies and laws, our professionals empower clients to navigate, withstand, and potentially succeed in audits. 

Crucially, we have the capability to pinpoint the applicable tax statutes and exemptions tailored to the client's business. We then formulate a tax compliance plan aligned with the actual sales and use tax liability of the business. This strategic approach enables clients to redirect their time and resources toward their core business activities, alleviating the burden of sales tax compliance.

American First provides a wide range of sales and use tax services to clients, including:

• Audit representation
• Compliance review
• Redetermination support

The sales and tax Audit Team at American First is Ready to Assist Your Business   

American First brings extensive expertise in handling sales and use tax audits across diverse industries and jurisdictions. Through a comprehensive examination of your sales and use tax compliance strategies, identification of potential risks and weaknesses, and adept representation during audits, HRSS aims to secure a fair outcome that accurately reflects your sales tax liability. Equally crucial, we can formulate a sales tax compliance plan to minimize the likelihood of future audits and establish a clear and defensible position in the event of another audit. 

Our Sales and Use Tax Audit team provides guidance and representation to businesses facing sales and use tax audits. Contact us today to learn more.