What if your business has been overpaying taxes for years—and didn’t even know it?
With over 60,000 unique sales and use tax codes across the U.S., it’s easy for even the most meticulous finance teams to make costly mistakes. These errors often go undetected for years, quietly chipping away at your bottom line.
That’s where a sales and use tax review—also called a reverse audit—comes in. It’s a proactive strategy that could mean thousands in refunds and long-term tax savings.
Let’s break it down.
What is a Sales and Use Tax Review (Reverse Audit)?
A sales and use tax review is like a financial health checkup, it’s designed to uncover issues, but more often than not, the real surprise is finding hidden cash in the form of overpaid taxes. While underpayments can lead to audits and penalties, overpayments are a more common and often overlooked problem—one that could be quietly draining resources from your bottom line.
Here’s the deal: businesses regularly pay sales tax on items that are legally exempt, especially in industries like manufacturing, hospitality, and real estate. Over time, those small errors add up to significant overpayments. A reverse audit digs into your historical purchasing data and identifies where your business has overpaid and is eligible for a refund.
For example, maybe your team paid tax on replacement parts used in your production line—parts that are exempt in your state. Or maybe a supplier charged sales tax when the burden should have fallen on the buyer under use tax laws. These scenarios are shockingly common and hard to spot without specialized expertise.
How The Brennan Group Conducts a Sales and Use Tax Review
At The Brennan Group, we’ve fine-tuned a review process that’s both comprehensive and hands-off for your internal team. Here’s what it looks like:
- Data Collection & Analysis
We begin by gathering accounts payable invoices, sales and use tax returns, and other financial reports. Our team dives into the data, line by line, using proprietary tools and deep tax code knowledge. - Tax Code Application & Research
We apply state-specific laws, exemption rules, and relevant court rulings that could impact the taxability of your transactions. Did you know some states exempt certain packaging materials or shipping costs? Most teams don’t. - Quantifying Refunds and Exposures
We identify overpayments (refunds you’re owed) and underpayments (potential exposures) and quantify them with full documentation. - Compliance Review Report
You’ll receive a detailed report outlining what was taxed correctly, what wasn’t, and how to fix it going forward. This list of refunds serves as a blueprint for future compliance. - Filing & Follow-Up
We take care of filing refund claims, amending returns, and even communicating with vendors or taxing jurisdictions until the refund is in your hands. You don’t lift a finger.
Why a Sales and Use Tax Review is Essential for Every Business
Sales and use tax reviews aren’t just a “nice to have”, they’re a smart financial safeguard. Here’s why:
Cash Back, No Catch
We often uncover tens, or even hundreds, of thousands in overpaid taxes. That money goes right back into your business.
Peace of Mind
By correcting your systems and documentation, we reduce future audit risk and bring clarity to your tax processes.
Industry-Specific Risk
Certain industries are more vulnerable than others. Manufacturers, for example, often overpay on exempt production items. In real estate, misapplied tax on contractor services can balloon quickly. And in hospitality? Many properties unknowingly pay tax on amenities that should be exempt.
The Brennan Group Advantage
Why choose The Brennan Group for your sales and use tax review? Because we’ve seen it all, and solved it all.
Deep Expertise
Our team includes former state auditors, CPAs, and seasoned tax attorneys. We know how the game is played—because we’ve been on the other side of the table.
No Risk Pricing
We work on a contingency basis. That means if we don’t find savings, you don’t pay a dime. No fine print. No surprises.
Long-Term Value
Our process doesn’t just recover refunds, it sets you up for continued compliance. We identify process gaps and offer strategic fixes that pay off year after year.
When to Schedule a Review (Hint: Sooner is Better)
Certain events should trigger a review ASAP:
- You’ve expanded into new states
- You’ve implemented new accounting software
- You’ve had a recent state audit
- It’s been 2+ years since your last review
Remember: many state statutes of limitations cap refund claims at 3 to 4 years, so every month you wait could mean money lost forever.
Ready to Take Back Control of Your Sales and Use Tax?
A sales and use tax review is one of the easiest ways to protect and grow your bottom line. With The Brennan Group, it’s low-risk, high-reward—and handled by the best in the business.
Let’s see what we can recover for you. Book your free consultation today.
