SALT Solutions is the country’s preeminent representation for healthcare organizations regarding sales and use tax. We work with the nation’s largest hospital corporations, surgical companies and laboratory organizations, and we hold a unique niche within the complex healthcare sales and use tax industry.
Through hundreds of projects with healthcare facilities, we know healthcare services, products, vendors and exemptions better than anyone. SALT Solutions’ impressive client base is a testimonial to this expertise.
Our deep understanding of the business operations of hospitals, surgery centers and laboratories has resulted in extensive refunds and minimal time commitment for our clients.
Whether you are a nationally recognized healthcare organization or a smaller independent healthcare company, SALT Solutions will review your sales and use tax history to identify exemptions, leading to impactful refund opportunities. Our dedicated team will also find and reduce possible exposure liabilities and provide a multitude of services to increase efficiencies and profitability.
Optimize growth, maximize refunds and save your team valuable time. Let SALT Solutions manage your sales and use tax with customized strategies tailored to your business needs. Contact us today to learn more.
Case Studies
Executive Summary:
A Lab client underwent Business & Occupation (B&O) a sales and use tax audit covering a four year period.
Challenges:
The state’s original audit assessment held an additional $10.9M of income subject to B&O tax and $1.25M subject to sales/use tax. The auditor had held proceeds from several COVID relief sources to be subject to B&O, was questioning income derived from other states, as well some sales of research data where they had previously been incorrectly advised by a Top 10 firm on how to treat. The lab client was in the middle of a project to digitize their records, but many records were still in paper copies and would be time consuming to locate. Added recent challenges regarding data breeches in the healthcare industry led to a temporary need for cash, and an audit assessment would only heighten the problem.
How SALT helped:
SALT’s tax team traveled to the site to pull and review documents to support the audit, to avoid the additional drain on the Lab’s staff. They were able to research and prove the exempt nature of the stimulus funds to the auditor as well as the out of state income. They reversed the incorrect advice of the previous firm and were able to obtain a refund for the Lab on the sales tax they reported in error, and incorrect B&O rate. In addition, they reviewed all of the lab purchases and were able to obtain large sales and use tax refunds on exempt products used in the laboratory.
Results:
SALT ended up netting a refund of approximately $843k in tax instead of an audit assessment. During a time when cash was a premium, the tax department was able to help the company by bringing cash back into the business.
Executive Summary:
SALT Solutions turns an ambulatory surgery center’s sales/use tax audit assessment into a refund.
Challenges:
The State’s Department of Revenue developed an initial audit assessment of $262k for underpaid sales/use tax based on purchases of various medical equipment, supplies, and devices on the grounds that these items did not qualify for any existing exemptions. The problem was compounded by the State’s ambiguous tax code, a lack of guidance issued by the Department of Revenue, and stubborn audit staff.
How SALT helped:
SALT Solutions’ team reviewed all of the assessments identified by the Department of Revenue, gathered necessary documentation to argue that many of these items were exempt under statutes that were previously thought to be inapplicable to the client, and successfully reduced the audit liability to $135k. Simultaneously, SALT Solutions identified previously unidentified sales/use tax overpayments/unutilized exemptions totaling $332k. After conducting the review, SALT Solutions presented findings to the Department’s audit staff and worked to develop clarity regarding the Department’s administrative practices and documentation required to establish relevant exemptions.
Results:
Rather than paying $262k to the Department, the client ultimately received a refund check for $197k, a net result of $459K of benefit to the client. In addition, the client was able to leverage SALT Solutions’ audit results to adjust compliance processes and limit future over and underpayments.
Executive Summary:
Over 9 year relationship, SALT saves orthopedic specialty hospital $1.6M in sales/use tax.
Challenges:
The Orthopedic specialty hospital was using paper copies of invoices and was concerned a project like this would be too time consuming. Staff were manually accruing use tax and did not have an automated system in place or the budget to adopt new software.
How SALT helped:
SALT’s deep knowledge of the healthcare field and vendor sales tax charging patterns in the state helped us identify and target the necessary vendors. Our staff traveled to location and digitized the records before returning to our offices. Analysis was also done on their internal use tax accrual process and we educated the client and provided a list of items approved by the state’s auditor where they could stop accruing use tax. SALT assisted the client in reaching out to vendors where sales tax could safely be turned off for certain products.
Results:
SALT Solutions was able to secure this company a total of nearly $1.6M in savings through the first 3 visits. The company feels more secure in their use tax accrual processes currently, and has been able to reduce the amount of use tax they accrue. They now request us to revisit their records every two years in order to recoup the sales tax some of their vendors are still overcharging.
Executive Summary:
SALT assisted an independent lab to review their sales and use tax obligations in the state.
Challenges:
Based on similar success for other labs in the same state, SALT reached out to a smaller independent lab. At first the laboratory was nervous and couldn’t believe that many large vendors could be charging tax in error. After discussing with some of SALT’s other clients in the state and other industry contracts, they realized they hadn’t been aware many of their largest purchases should have in fact been exempt from tax. The company spent several months trying to work with their vendors on their own to recoup the overpaid tax but had not been successful.
How SALT helped:
SALT remotely reviewed the purchase invoices for the lab client, and verified which of their vendors were complying with sales tax. Our staff then worked with their vendors to get the appropriate paperwork together, research the necessary elements of each exemption, and tracked the proof of payments of the sales tax to apply to the state for refund. Now that this methodology is in place and the products all have been reviewed and certified to be exempt by the state, the company can use this process going forward to avoid the overpayment of tax.
Results:
SALT was able to secure $743k in sales tax refunds, and reduce their future sales tax burden by an average $23k each month.
Get in Touch
Contact Info
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14400 Metcalf Ave
Overland Park, KS 66223 - info@saltsolutions.biz
- 913-563-3600
