Sales Tax Exemptions Review
Sales tax exemptions can reduce costs — but only if they’re applied correctly and properly documented. At BlancPeak, our CPA team reviews your exemption practices, validates certificates, and ensures compliance, so you can benefit from exemptions without increasing audit risk.
Why Sales Tax Exemptions Review Matters
Exemptions are one of the most common problem areas in sales tax compliance. If applied incorrectly, they can lead to underpayment, penalties, and costly disputes during audits. If not applied at all, your business may be overpaying sales tax unnecessarily.
Our CPA-led exemption reviews strike the balance. We verify certificates, ensure exemptions are valid, and document everything to withstand state scrutiny. The result is fewer audit headaches and more confidence in your compliance.
What’s Included
Comprehensive review of exemption certificates
Validation and organization of documentation
Multi-state exemption compliance guidance
Strategies to minimize audit exposure
CPA support during audits and disputes
We Help With
Invalid or expired exemption certificates
Missing documentation to support tax-free transactions
Applying exemptions incorrectly across states
Overpayment of sales tax on exempt goods or services
Audit exposure due to poor recordkeeping
Explore More Sales & Specialized Tax Services
Exemption reviews are part of a complete compliance strategy. Explore other services in our Sales & Specialized Tax category:
- Sales & Use Tax Compliance — accurate filings across states
- Nexus Discovery & Compliance — identify and manage multi-state obligations
- Audit Sampling & Compliance Review — defend your business during audits
- Excise & Property Tax Compliance — specialized compliance for industry-specific taxes
- Indirect Tax Recovery — recover overpaid taxes and boost cash flow
FAQs: Sales Tax Exemptions Review
A CPA helps you avoid overpaying taxes and build a strategy that supports your financial goals. Here’s what you need to know about tax filing, planning, and audit representation —whether you’re in New York or anywhere in the US.
What is a sales tax exemption certificate?
An exemption certificate is a document provided by a buyer to a seller claiming that a purchase is not subject to sales tax. Common examples include resale certificates or exemptions for nonprofit organizations. Without proper certificates, the seller may be held liable for the tax.
How often should exemption certificates be reviewed?
At least annually. Many certificates expire or become invalid if information changes. Regular reviews ensure your documentation is current, reducing audit exposure and avoiding penalties.
What happens if my business can’t produce exemption certificates during an audit?
If you can’t provide valid certificates, auditors will typically assume the sale was taxable — even if it should have been exempt. This often leads to back taxes plus penalties and interest. Organizing certificates in advance is critical.
Are exemption rules the same in every state?
No. Each state has its own exemption rules, eligibility requirements, and documentation standards. What qualifies as exempt in one state may be taxable in another. Our CPAs help you navigate multi-state compliance with confidence.
Can reviewing exemptions really save money?
Yes. Many businesses overpay sales tax by failing to claim valid exemptions. A proper review can uncover missed opportunities to reduce costs while also ensuring you aren’t taking on unnecessary audit risk.
