7 Ways Forensic Accounting Can Uncover Corporate Sales Tax Overpayments, Leading To Refunds

As a result of diverse, complicated & often contradictory sales tax laws, forensic accounting can uncover significant overpayments & refund opportunities.

PHILADELPHIA, PA, UNITED STATES, April 8, 2026 /EINPresswire.com/ -- The famous poet, Henry David Thoreau said, “Never look back unless you are planning to go that way.” For most corporate leadership these are guiding words motivating growth and innovation. However, when it comes to companies that do business in multiple states, looking back on their payments of sales taxes can lead to six and seven figure refunds.

“For most companies, once the books are closed, they rarely look back. However, when it comes to sales taxes, forensic accounting can uncover significant sales tax overpayments leading to refunds, as a result of diverse, complicated and often contradictory sales tax laws & rules of the jurisdictions in which they do business,” said William Flick, a Managing Director at EisnerAmper Advisory Services.

Flick provides an example of a corporation, headquartered in Kentucky, but with an office building in Pennsylvania. It is charged for landscaping services by its contracted national landscaping services firm, that often charges sales tax on their total invoices. Most companies just pay the bill, if it seems reasonable, including the sales taxes. However, in Pennsylvania, the sales tax on labor can be exempted if the vendor separately breaks out the cost of labor and the cost of the landscaping materials. For companies with large landscaping expenses, like this one, a forensic review of the last 3 years can reveal significant sales tax overpayment, making them eligible for refunds.

Flick lists seven of the leading reasons where forensic accounting can uncover prior years’ sales tax overpayment. They include:

1) Not prioritizing sales tax management.
For many large companies sales tax management often operates ‘on automatic’, meaning that their bookkeeping departments mechanically pay the sales tax amount billed to them, which can cause them to overpay,

2) Assuming that others in the company are responsible for sales tax management.
Sales taxes are often viewed as a minor feature of the bookkeeping function. Many CFO’s assume that others in their organization are responsible for the management of sales taxes; such as the comptroller, other financial or accounting employees, or even the accounting firm. Without assigned management of sales taxes accuracy will be overlooked or disregarded.

3) Using financial software that is slow to be updated regarding the latest sales tax laws and rules.
With over 13,000 jurisdictions charging sales taxes and the definitions of sales tax nexus changing frequently, it is often difficult for sales tax software to keep up. Taking a look back by engaging forensic accounting makes sense for discovering errors and unjustified sales tax charges.

4) Relying on artificial intelligence to manage sales taxes.
The information foundation of AI is based on the past, utilizing historical data to provide results. The pace of change taking place in America’s sales tax environment can cause AI to overlook the latest circumstances and their effects on multi-state commerce and taxation.

5) Assuming that sales tax bills and audits from jurisdictions are correct.
Even if a company has received a tax bill or audit request from a state does not mean that it is accurate and should often be challenged.

6) Flawed communication between local and national bookkeeping departments.
Some companies might permit the headquarters’ bookkeeping department to overrule local offices’ recommendations regarding sales tax exemptions, without communicating with them. Other times a local office might incorrectly approve payment of invoices, including sales tax, which the headquarters automatically pays. Active communications and transparency within multi-state companies can often prevent overpayments.

7) Not correcting prior errors in sales tax payment going forward.
Sometimes sales tax payment errors can become built into the company’s bookkeeping system. Even when sales tax overpayment errors are found and corrected, they can be easily repeated in future years if they are not adjusted fundamentally in the system

Although this doesn’t propose to be a complete list, it does illustrate a number of instances where large companies can unwittingly overpay sales taxes.

Said Flick, “Using forensic accounting to take an annual look back over sales tax payment payments can not only uncover overpayments, it can also set up the company on the right path for the future. As well, when you consider the EBITDA of most companies to be in the 6-10% range, savings on unwarranted sales taxes, can be a significant contributor to profitability."
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ABOUT: William Flick and the EisnerAmper Advisory Group

William Flick is recognized nationally as a thought leader on the subject of business sales tax nexus and compliance. He is in the sales tax leadership at EisnerAmper, one of the largest business consulting groups in the world, comprised of EisnerAmper LLP, a licensed independent CPA firm that provides client attest services; and EisnerAmper Advisory Group LLC, an alternative practice structure that provides business advisory and non-attest services in accordance with all applicable laws, regulations, standards and codes of conduct. Prior to merging with Eisner Amper, Flick owned FM Cost Containment one of the leading forensic tax recovery firms in the United States, specializing in tax confirmation and recovery of overpayments of sales and use taxes, as well as tax audit defense, utilizing proprietary research and knowledge of little-known technicalities in the tax laws of each of the 50 states, including over 13,000 tax entities throughout the United States.

For more information, please contact:
William Flick
EisnerAmper Advisory Group LLC
40 Lloyd Ave.
Suite 308
Malvern, PA 19355
Phone: 484-580-8907
Email: william.flick@eisneramper.com

Website: https://www.eisneramper.com/about-us/professional-directory/bill-flick/
LinkedIn: https://www.linkedin.com/in/williamflick
Twitter: https://www.x.com/BillFlickJr # # #

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