Listen to Our Free KPMG Reverse Audit Webinar

August 11, 2016

Does your company have an AP (accounts payable) tax compliance process in place? Why is this critical? If you don’t have a complete process in place, you may be at risk for audit and penalties.

What is a Reverse Audit?

A reverse audit is typically undertaken by tax practitioners and is similar in many ways to a state government review. However, it can also uncover gaps in your sales and use tax process and help you identify areas in need of improvement. For example, you may be charging sales tax when the sale should be exempt. Or, you may be inappropriately charging tax because there’s no exemption claim or you have an invalid exemption certificate on file. In these, and other scenarios, you may end up paying tax that is not legally due. By detecting overpayments of sales and use tax paid to vendors or remitted to governmental authorities, you can seek out and get refunds to your organization. During a government audit or review, they will only be looking for underpayments. Moreover, a reverse audit is an effective way to justify the benefits of a tax engine. KPMG will complete a reverse audit and only be paid if/when the organization gets money back. In some cases, the refunds may offset the cost of a tax engine.

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Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates.
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