Our client, an operating company providing both services and products was issued an audit notice by the New York State Department of Taxation and Finance regarding their sales tax. The Department claimed all of the revenue was subject to sales tax, as opposed to only the small portion of the revenue that was product-related.
We coordinated with the client’s finance department and their Chief Financial Officer. We managed the audit and reduced the potential tax liability from a seven-figure sum exclusive of interest on penalties to a mid-five-figure sum with interest and penalties included.
Our client’s tax obligation was substantially reduced from more than a million dollars to approximately $40,000.