6 Of The Leading Reasons Why Top CFO's Overpay Sales Taxes At Their Companies

(Even Though They’re Pretty Sure They Don’t.)

PHILADELPHIA, PA, UNITED STATES, July 3, 2025 /EINPresswire.com/ -- Many of the largest businesses in the United States overpay sales taxes, according to William Flick, a thought leader in sales tax policy and process, and a Managing Partner at EisnerAmper Advisory Services. Based on nearly 40 years of empirical results, Flick has seen a significant number of large companies, that operate in multiple states, overpay. He believes that many of these companies could be eligible to receive six and seven figure refunds should they elect to properly manage, identify and pursue recovering their overpayments. Said Flick, “We have found that sales taxes are not a priority with many CFOs and comptrollers. Financial departments often just assume they should just pay the sales tax amount on the bill without question. When companies overlook overlapping laws, nexus definitions, exemptions and other factors, they potentially close the door on recouping significant refunds and obtaining future savings.”

Flick has identified six reasons why top CFO’s overpay sales taxes, even though they don’t intend to. They include:

1) Assuming that others in the organization are in charge of managing sales taxes.
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/accounting employees or even the accounting firm. On the other hand, those people may assume that the CFO’s team is covering this. If there is not an expert in the company focused on managing sales taxes, it is likely that proper management of sales taxes will fall in the middle and accuracy will be overlooked or disregarded.

2) Assuming that the amount of sales tax billed is correct.
Bookkeeping staff often assume that the sales tax amount charged on each invoice is unchangeable and should be paid in full. However, just because a sales tax amount is billed doesn’t mean that it is owed.

3) Having satellite office bookkeeping overruled by headquarters bookkeeping.
In companies where satellite offices approve regional bills for payment, some will note that the sales tax amount is incorrect or not due. Sometimes the satellite recommendation will then be overruled by the final arbiters at headquarters who incorrectly assume that sales tax is due as billed.

4) Believing that sales tax is trivial.
Many CFO’s view sales tax as too trivial to worry about. However with average corporate net profits hovering around 5% or less, reducing or eliminating a six or eight percent (or more) sales tax can make a difference. Going back three years and then analyzing and adjusting sales taxes paid can add back 6 and 7 figure refunds that go straight to an organization’s bottom line.

5) Not providing training to the financial team about sales tax. Without proper training about sales tax, nexus, overlap and more, the financial staff will be unaware of the potential to overpay and continue to do so.

6) Not taking into account the strategic importance of sales taxes and sales tax nexus.
Understanding the importance of “sales tax nexus” on strategic decisions will not only cause the company to overpay on sales taxes, it can also cause them to make costly decisions for the future. The definitions of sales tax nexus in each of the states in which a company operates should be a strategic consideration on where a company decides to locate offices, warehouses, off-site employees and more.

Said Flick, “Companies would do well to adopt what we call a “Sales Tax Culture.” A “Sales Tax Culture” is an environment of priority, training, awareness aligned to maximize corporate benefit from proper sales tax management, enhancing overall profitability, both now and in the future.”
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ABOUT: EisnerAmper Advisory Group
EisnerAmper, one of the largest business consulting groups in the world, is 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. Having recently joined the EisnerAmper family, FM Cost Containment is 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 10,000 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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Leo Levinson
GroupLevinson Public Relations
2676646161 ext.
leo@grouplevinson.com
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