Client Profile
| Annual Revenue: | $1 billion | | Industry: | Manufacturing | | Geographic Footprint: | California, Georgia, Kansas & Pennsylvania | |
Issue
A manufacturer of agricultural products with physical locations in California, Georgia, Kansas, Missouri and Pennsylvania had sales and use tax exemptions available for a variety of transactions, differing by jurisdiction. Each plant attempted to determine the applicability of exemptions with minimal oversight conducted at the corporate level.
Solution
CBIZ reviewed tax filings with various state and local jurisdictions and payments to thousands of vendors over the previous three years, identifying refunds based on applicable tax law. We also provided the manufacturer future savings through prospectively implementing exemptions with specific vendors and through internal accrual procedures.
Outcome
The refund study returned the manufacturer more than $700,000 in previously paid taxes and more than $150,000 in annual savings on a go-forward basis from 11 vendors in three states of operation.
In addition to the cash savings, the support provided to the manufacturer’s personnel as part of this process enhanced their understanding of the available exemptions in each state, as well as the exemptions’ applicability to specific transactions.
Copyright © 2016, CBIZ, Inc. All rights reserved. Contents of this publication may not be reproduced without the express written consent of CBIZ. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).