$270,000 in “Quick Hit” Georgia Sales Tax Savings

ga-quick-hit-tax-savingsIn a regular meeting with a client relationship, the client (CFO) informed us that the company planned to close on the purchase of a large software package. We inquired as to whether the client would be paying sales tax on the software in Georgia. ‘Yes, we are. We looked at it, and it appears the software is taxable, and the vendor agrees and plans to collect it’. The tax in this instance was $270,000. We understood that in Georgia, if software is purchased and delivered electronically (via internet download or delivery electronically), with no tangible medium, the transaction is not subject to Georgia sales tax. That evening we were on the phone with the software vendor, and were successful in modifying the contract for sale and delivery terms. The client saved $270,000 in sales tax, a tax the company would have otherwise been forced to pay.

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In Summary, Barnwell Consulting, LLC can:

  • Find state income/franchise tax refunds and have collected millions of dollars in cash refunds
  • Assist with altering corporate structure when good business purpose exists, to help lower state income tax liabilities
  • Assist with FIN 48 accruals, but more importantly with strategies to resolve FIN 48 uncertainty projects that help companies lower the state effective tax rate.
  • Handle complex income and sales/use tax audits and have been successful in eliminating or reducing material assessments
  • Assist clients with SALT issues in acquisitions and divestitures
  • Identify credits and incentives, which fall into two broad categories, statutory and negotiated. With respect to the former, we see our job less as identifying statutory credits – and more focused on whether our client has fully recognized the credit, and obtained the maximum possible benefit.