Practice Areas / Sales & Use Tax and Severance Tax Consulting and Compliance


Sales & Use Tax and Severance Tax Consulting and Compliance Summary

MERIT’s approach to sales and severance tax consulting and compliance is focused on developing long-term value for our clients as a collaborative and trusted advisor. We do this by helping our clients build and implement proactive best practices and procedures which serve to reduce their overall tax liability and help mitigate exposure and risk. Our broad range of services can also be on an “as needed” basis as your outsourced tax department.

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Sales and Local Tax Services Offered 


Sales & Use Tax

Merit offers a full range of sales and use tax services. Our goal is to provide our clients with the kind of thorough and accurate guidance they need to make informed decisions, manage risks, and operate their business as successfully as possible.

Our team of professionals has experience with sales and use tax in practically every state of the union with an industry focus in oil & gas, manufacturing, retail, healthcare, software and construction. Our services can be broadly defined into the following 4 categories:

1) Refund Studies: This is a detailed review to identify and recover overpaid taxes. This includes preparing refund claims and/or amended returns, and working with either the taxing jurisdiction or vendors to secure the refunds or credit due our clients.

2) Compliance Services: This includes preparing returns, as well as nexus studies, voluntary disclosure agreements, registrations, and resale/exemption certificate management. In addition to preparing and filing sales and use tax reports, we provide ongoing consulting in regards to structuring transactions, preparing more effective compliance procedures and controls, and identifying and responding to exposure issues before they become material. Our compliance services also involve dealing with and educating vendors on taxability issues in order to ensure that our clients are not overpaying sales tax on purchases or sitting on unknown use tax liability. By being proactive in addressing use tax issues in a contemporaneous manner, we are able to assist our clients in ensuring that future audits are less expensive to deal with and less time consuming to defend effectively.

3) Audit defense Consulting: We provide consulting, tax research, negotiation, and argumentation to help our clients in responding to audit assessments. In addition to this, we can also function as the primary point of contact with the auditor and assist in responding to inquiries and data requests. We also work with the auditor to develop an audit plan which is fair for our clients and consistent with the law. Our depth of experience means that we know and can advise our clients on when to push back against an auditor and how to avoid being subjected to an unfair or unreasonable assessment. We also assist clients in filing protests and redetermination requests, as assist them and their legal counsel in preparing for either hearings or trial.

4) Taxability Consulting: We provide our clients ongoing tax consulting and guidance on a variety of issues as needed. This can include a large number of different types of services including but not limited to the following; due diligence for a pending acquisition, responding to their own due diligence from a prospective buyer, addressing vendor taxability issues, helping explain the tax implications for proposed transactions, guidance on structuring and preparing transactions, taxability training and CPE classes for employees, reviewing contract language and reporting on the potential sales and use tax implications, and performing high-level diagnostic review of existing systems and processes as they pertain to sales and use tax. We also assist our clients in drafting requests for letter rulings and memoranda on specific tax issues or questions, and in the preparation and research of tax decision matrixes for both sales and purchase transactions.

Severance Tax

Merit provides a number of services related to severance taxes. These include compliance services, refund reviews, and general taxability guidance. We assist our clients in preparing severance tax reports and returns, securing refunds of overpaid taxes, taxability guidance on issues pertaining to severance tax, assisting as needed in audit defense, and conducting reviews and procedures to help our clients get certified and take advantage of legislative exemptions. This includes filing the necessary certification and applications with administrative and tax agencies to secure exemptions, amending reports to generate credits, dealing with first purchasers, recertifying well types, and preparing marketing cost studies.

Other Related Taxes

Merit also provides consultation and compliance services in regards to motor fuels and excise taxes, Washington B&O taxes, unclaimed property, Canadian GST/HST and PST issues, VAT taxes, and various other state and local taxes.

We value long term relationships built on trust, integrity and solid services for our clients. 

 


 

Merit Advisors, LLC
114 W. Main St.
PO Box 330
Gainesville, TX 76241

Phone: 940.665.6452
Fax: 940.612.3921
Email: info@meritadvisor.com

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