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Sales & Use Tax Case Studies

Explore real-world examples of how Sales Tax Colorado has helped businesses navigate complex sales and use tax challenges, reduce audit assessments, and implement effective compliance solutions.

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Real Results for Real Businesses

See how our specialized expertise translates into significant savings and peace of mind for our clients.

61.5% Saved on Audit

STC Saves Pediatrics Practice 61.5% on Audit Assessment!

Accounting Firm Calls on STC for Specialized Sales and Use Tax Services

An accounting firm contacted STC for help for their Pediatrics Practice client after a use tax assessment was issued. Being a service provider, they didn't have to file sales tax returns. They consulted with accountants and attorneys for over a year before forming the practice, but no one advised them of use tax.

They were assessed on the initial fixed assets and subsequent purchases including certain medical supplies. Some were exempted by the state, but not the home-rule city performing the audit. No use tax return was ever filed so there was no statute of limitation protection. The auditor thus went back 10 years to day one of operations.

58% Saved on Audit

Audit Settlement Brightens Denver Florist!

Florist Saves 58% on Audit Assessment

A long-time Denver florist contacted Sales Tax Colorado LLC for last-minute audit help. Denver had assessed tax interest and penalties on all delivery charges regardless of location, on some wire service charges and on floral enhancers, exempt sales lacking proper documentation, occupation privilege tax and other items. The florist had been filing returns for many years, but was never audited previously.

The auditor had agreed to remove some items and to waive penalties, but no further progress was made on disputing the proposed assessment. STC contacted the auditor and supervisor, presented arguments and negotiated further reductions.

Common Scenarios & Solutions

Sales Tax Colorado provides a variety of solutions to businesses facing Sales & Use Tax issues. Following are some scenarios designed to keep business leaders on their toes when it comes to understanding and handling Sales & Use Tax issues.

Scenario I: The Audit

Unexpected Assessments

Have you been notified that you will be facing an upcoming Sales Tax audit, or have you recently received an unexpectedly high Sales Tax assessment and don't know what to do next?

Solution: Audit Defense

Scenario II: Unregistered

Prior Exposure Concerns

Are you currently unregistered in one or more states in which you do business, and growing uneasy and concerned about the possible extent of prior Sales Tax exposure in those states?

Solution: Exposure Resolution

Scenario III: Uncertainty

Taxability & Nexus

Are you uncertain about the taxability of your products and services as it applies to the execution your current business model? Based upon this model, are you aware of which states you may have business nexus, requiring you to register for Sales Tax?

Solution: Taxability Matrices

Scenario IV: M&A

Purchasing a Company

Are you considering investing in or purchasing a company and want assurance that the target company owes no material unpaid Sales Tax liabilities, or are you considering an initial public offering (IPO)?

Solution: Due Diligence

Scenario V: Overpayment

Paying Too Much

Do you think you may have overpaid Sales Tax on your company's purchases?

Solution: Reverse Audit

Scenario VI: Compliance Gaps

Process Concerns

Are you concerned there may be gaps in your Sales & Use Tax compliance process resulting in possible material liability exposure or overpayments?

Solution: Operational Review

Do Any of These Scenarios Sound Familiar?

If you answered YES to any of these scenarios, please call Sales Tax Colorado to discuss your thoughts and receive our feedback on possible custom solutions to address your challenges.

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