MEGAN J. WHITLOCK CPA

When one of the firm’s emerging technology clients was making plans to sell their business, Trevor and his team noticed that they were unaware of sales tax filing requirements. Knowing from experience how complex such requirements can be for emerging technology companies who sell products across multiple taxing jurisdictions, Trevor and his team understood that this missing piece would pose issues during due diligence and could negatively impact the client’s sale. To help ensure that the sale went smoothly, Trevor and his team suggested that the Schneider Downs state and local tax group perform a sales tax nexus study on the company. The group performed an analysis on both the client’s material revenue streams and the sales tax reporting requirements in the jurisdictions where they had customers. Then, Trevor and his team used that information to estimate the client’s total tax exposure, pinpoint the jurisdictions with significant exposure and help draft Voluntary Disclosure Agreements in those the jurisdictions. “We know that these requirements can be hard on early-stage companies when they have limited staff and revenue generation is a primary focus,” said Trevor. “By doing this analysis and going through the voluntary disclosure agreement process, we were able to get the company compliant with their sales tax filing requirements at a significantly reduced cost.” In addition, this process eliminated tax issues and exposure for the company upon exit. Schneider Downs provides Big Thinking and Personal Focus in delivering a variety of services for large and small businesses, both publicly and privately held, as well as nonprofit organizations, government entities and more. Through our commitment to thought leadership and knowledge management, we deliver the solutions our clients need with a personal commitment to service.