Service Solutions

Effective Tax Rate Solutions

If your company is in the hard-to-avoid bureaucratic maze of determining state and local sales and use tax owed, chances are that you are spending way too much time (and money) with the compliance function.

BKD sales and use tax consultants can help you reduce the time and effort involved in determining use tax payments and with the inevitable state audit. Our effective tax rate (ETR) study will use statistical sampling methods to develop accurate and easy to use payment percentages. These percentages will determine use tax and local taxes due-all at significant time savings. Audits may be less frequent and much shorter in duration. Some states even offer no "true-up" provisions (no assessment) when they participate in the ETR development.

As part of our procedures to help you realize these savings, we can:

• Meet with you to review the work plan, apply for a direct pay permit as needed, identify locations of records and determine the electronic records needed
• Conduct interviews and tours of facilities to determine procedures and systems for payment of taxes
• Develop electronic samples as needed using statistical sampling methods
• Analyze sample transactions, records and source documents
• Calculate the use tax percentage and allocation of local taxes if applicable
• Present an implementation report providing the percentages and to what they apply
• Provide additional assistance, as necessary, to support you in the system application

For More Information

Contact your BKD advisor or: