• Excise Tax

    A review of the internal excise tax function may yield returns.

Minimize liabilities in the short and long term.

Companies paying and reporting state and federal excise tax on items such as heavy vehicles, cable and communication equipment, tires, airline tickets, motor fuel, alcohol and tobacco are mandated to meet government reporting requirements on those taxes.  
 
Many in-house tax departments may not have the expertise to recognize refunds that can be recovered or to meet all compliance requirements. A company’s excise tax reporting function may be inefficient if excise taxes are paid yet there is limited or no process in place to recover refunds, government reporting requirements are not being met or the company is under audit.
 
A detailed review of a company’s in-house excise tax function may yield cash recovery of refunds, help mitigate risk and identify fractures in internal processes. A BDO excise tax review encompasses an assessment of a company’s internal processes followed by a plan for:
 
  • Cash refund recovery opportunities
  • Audit defense assistance
  • Compliance assistance
  • Risk mitigation
  • Process review and technology automation 
 

The Telecom Industry

Telecommunication companies must also master additional taxes and fees imposed on their services, including local telecommunications taxes, federal universal fund fees, state universal service fund fees and 911 fees. Billing and remitting these taxes and fees can be very complex and failure to comply could cause significant exposures. Conversely, telecommunication companies may be eligible for exemptions or refunds of overpayments of tax on access charges and certain telecommunications equipment purchases. The Telecommunications group within our Excise Tax team helps clients develop optimization strategies for the years ahead.

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