John Goss Saves Client Thousands
- August 23, 2020
- Posted by: CKH Marketing
- Category: CKH Group Updates
John Goss saves client thousands after discovering an anomaly. As CKH continues to expand our practice and attract top talent, we recently brought on board a new Tax Principle, John Goss. John comes to us with over twenty years of indirect tax experience gained during his tenures in Big 4 public accounting and with well-known global companies like Newell Brands. His vast knowledge and understanding of tax law and business operations is providing valuable insight and expertise to the team.
Recently, during normal collaboration between our sales tax compliance team and one of our clients, we observed some unusual activity that we highlighted for our client. The activity was a spike in use tax in one state and then a spike in sales tax in a different state in the subsequent reporting period. Based on our client’s feedback, John identified a significant use tax overpayment and recovery opportunity.
Our client – a large manufacturer and distributer of consumer goods in the US – withdrew inventory items for use as promotional giveaways at a tradeshow. Typically, items withdrawn from inventory for use as promotional giveaways are subject to use tax when and where they are “used.” As a result, our client accrued use tax for the state where the tradeshow took place. After the tradeshow, our client shipped the undistributed inventory to one of its outlet stores in a different state where it was sold at retail and sales tax was collected and remitted. Our client considered these to be two separate, unrelated events. John, however, immediately saw the opportunity, and we assisted our client to recover the use tax associated with the inventory that was sold.
This “accrue on withdrawal” approach is a common business practice and is both efficient and effective for normal sales promotion activities. However, in this situation, withdrawing inventory for demonstration and display while it is still available for sale is generally not a taxable use, and therefore, no use tax accrual is required. In turn, John Goss saves client thousands through his knowledge of the industry.
This type of attention to detail and passion to look out for our clients’ best interest are distinguishing factors of CKH, and we are proud to employ leaders who demonstrate these values. Should you need assistance in Sales and Use Tax Compliance, please feel free to contact us at 770-495-9077. Also you can contact us today to begin with a free consultation.
The above article only intends to provide general financial information and is based on open source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personal tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm / errors / claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.