Being strapped for cash in a crisis is a painful situation. Thankfully, Acima helps shoppers get what they need when they need it by offering lease options at thousands of stores in person and online. Customers can shop easily from their mobile app with flexible lease to own options on furniture, electronics, and even car repairs. They’ve opened up opportunities for people across the country to have access to the items they want and need without getting tangled up in credit. 

The combination of mobile shopper and approved local businesses has given Acima the ability to rapidly grow into new markets with fewer obstacles along the way. However, managing sales tax compliance for a growing business presents its own challenges. Without consistent oversights, Acima was collecting more problems than solutions, including audits, unpaid sales, and increasing liabilities. 

Lax Support Leads to Compounding Issues

“Sales tax across all 50 states is so niche, building in-house means the impossible task of finding and hiring true sales tax experts, and living with the risk that they can leave your employ at any time, taking domain knowledge with them and leaving you in a lurch.” 
-Nate Heward | former CFO | Acima

One of the biggest problems that companies face with managing sales tax compliance is a lack of customer support. Whether you are relying on software support teams or an outsourcing team, businesses are often left high and dry, looking for a more confident source of support. 

Acima was in such a situation. Their sales tax software couldn’t keep up with their growth and their customer service requests went unanswered. Unfortunately, the longer their problems went unchecked, the larger they became. 

Knowing things were becoming increasingly problematic, the Acima team started looking for alternatives that could meet their needs. They came across Peisner Johnson, who stepped in immediately to slow the compounding problems caused by their lack of compliance.  

White-Glove Support Opens Path to Growth (Real People, Real Support)

“Peisner is a Godsend. We were always fully automated via API with realtime rates and third-party file and pay, that was the easy find. The complete service…that is the unicorn find.”
-Nate Heward | former CFO | Acima

When Peisner Johnson partnered with Acima in February 2019, they were given the green light to tackle the growing problem of non-compliance and sales tax liabilities. They registered them in all the states and jurisdictions where they met economic nexus, including those they hadn’t even realized were missing their sales tax responsibilities. 

Thankfully, the Peisner Johnson team knew exactly what to do to reduce liabilities and save the Acima team hundreds of thousands of dollars. They were able to get them compliant in over 240 state and local jurisdictions in the US and Canada! 

One of the most significant advantages to the Peisner Johnson-Acima partnership was the ability of the sales tax team to integrate into Acima’s internal teams and processes. They coached team members on how to use and optimize their existing software so it better met their needs. 

Even more importantly, the Peisner Johnson team operated like a trusted team member who regularly checked in and answered questions. Acima confidently handed off all sales tax responsibilities to Peisner Johnson so they could turn their teams’ focus on growth and customer support. 

By December 2020, Acima had reached $1.25 billion in revenue and was acquired by Rent-A-Center for $1.65 billion. Peisner Johnson had become so indispensable to Acima’s success that they were brought on to manage sales tax compliance for Rent-A-Center’s over 2,000 locations, as well.

Connecting Communities With Better Internet and Phone Services

Internet access is quickly becoming a necessity for every American household and business (if it hasn’t been already). Unfortunately, due to the U.S.'s massive size and the large number of rural communities, reliable internet isn’t always easy to come by. Rise Broadband is seeking to fix that for 16 states across the country. 

Rise Broadband is known for delivering the best fixed wireless technology coverage to unserved or underserved customers. Founded in 2005 as JAB Wireless and through acquisitions of Skybeam, Digid, T6, Prairie iNet, and Rhino Communications, they rebranded all names to Rise Broadband in 2015. 

Now, they are a leading provider of quality, affordable internet and phone services. 

The Lone Star State Offers Refund Programs

“Peisner Johnson saves us a ton of time when they take on our CITRUS filing research and paperwork. It takes a lot of man hours to put that all together correctly, I’m glad we can lean on their expertise to get it done right.”
-Jefferson Pickering | Sr. Accounting Supervisor, Rise Broadband

As Rise Broadband acquired new businesses, they faced a large-scale problem of centralizing and streamlining processes. This became increasingly difficult when they were working through audits with everything scattered like tumbleweeds in the wind.

Their team works hard to manage regular sales tax returns, but came to Peisner Johnson for one Texas-sized obstacle. CITRUS is a specialized refund program for telecommunications companies (cable, phone, and internet providers). Under this program, these companies can apply for a refund of state sales and use tax they have paid on qualifying purchases of tangible personal property used in their services. 

The state sets aside $50 million for these refunds, so there’s a large incentive for all telecommunications companies to put in the work for a refund. The tricky part is that there are select eligible items, and the requests for a refund must include detailed transaction information. A task that requires expediency and a thorough understanding of the refund process, as they put a 3/31 deadline on filing claims.

Keeping Cash in Their Business With Sales Tax Refunds

“In my role, I’m always working to ensure compliance with regulations, while trying to keep as much money in the business as possible. I’m glad I can always trust the Peisner Johnson team and the work they do for us to help me in that regard.”
-Jefferson Pickering | Sr. Accounting Supervisor, Rise Broadband

Peisner Johnson jumped in to sift through invoices and extract data relevant to Rise Broadband’s sales tax refund. The PJ team is well-versed in the qualifying items (switches, routers, modems, antennas, etc.) and has set up processes to quickly review a year of invoices to extract the right data. Left on their own, Rise Broadband was overwhelmed by the tedious nature of the sales tax refund application. 

For the 2023 sales tax year, Rise Broadband will receive over $240,000 as part of the CITRUS program. Additionally, there is potential for additional funds to be distributed in later years after appeals and disputed claims are resolved for the CITRUS program for that year. All $50 million will be distributed, and thanks to Peisner Johnson, Rise Broadband will receive a portion of that to continue delivering high-quality internet and phone services to communities across the country.

Everyone knows the Volcom brand. They’ve been a major player in the skate, surf, swimwear, and snowboarding clothing arena for over 30 years. The business is fueled by its employees’ penchant for individualism and an “irrational pursuit” of their passions. Thirty years and over 100 global locations, what started as an idea during an epic snowboarding trip to Tahoe in the winter of 1991 has cemented itself as an industry and lifestyle essential. 

Fighting Gnarly Sales Tax Problems 

Today, there is a team of brilliant minds behind the scenes at Volcom. Alyssa Dao and Amy Dietrich are two such people. They help run the accounting and finance department. Peisner Johnson met them in 2020 when their sales tax software provider was leaving them high and dry with no support. Their sales tax software was missing essential capabilities Volcom needed it to have. 

Rocky Mountain State of Mind

We realize trust is built over time, especially when it comes to taxes and finances. We started the discussion with some Canadian and Colorado local returns. Alyssa and Amy quickly connected with our friendly demeanor, strong experience, and problem-solving expertise, and, like so many business owners, they appreciated our flexibility. 

A company that has multiple entities and revenue streams (brick and mortar, e-commerce, wholesale distribution, etc.), like Volcom, needs special attention. The value of the peace of mind that Alyssa and Amy experienced is immeasurable. 

How We “Nailed the Drop”

Peisner Johnson was able to immediately provide support and services for the Volcom team to support their sales tax needs. 

• We cleaned up past liabilities (back returns, amended returns, etc.).
• We made some changes in the rate calculation software. This created more accurate taxability results that led to the correct tax collection.
• We gleaned better data and optimized monthly reporting.
• We managed their accounts with the states, including handling notices and letters.

PJ was a reliable and responsive extension of the Volcom accounting and finance team. Over the past four years, the Volcom team has been involved in several mergers and acquisitions, during which PJ has completely handled the sales tax compliance. The Volcom team now has more time and resources that are required for the success of their global brand.

In sports nutrition, it’s rare to come across a brand with over 40 years of experience creating clean, proven supplements. But that’s exactly what Jeff and Marie Pedersen have done with Sports Research. Not only that, but Sports Research continues to be a family-run business with all six of their children working behind the scenes. Their team sources and tests only the highest quality ingredients for a powerful end product. The results are proven supplements that support everything from wellness to sports performance. 

Nexus Nightmares

Like so many businesses, the aftermath of the Wayfair vs. South Dakota case created a throbbing administrative headache for Sports Research. They had built a large, successful company that now suffered from champagne problems: They were going to meet economic nexus across the country and needed massive support undertaking their new sales tax responsibilities. In order to stay compliant, they started researching their options. 

As they traversed the sales tax software landscape, they found only fear-based sales tactics and rigid proposals. Nothing met their unique needs, and no one could give them the support they actually wanted. There had to be a better way. 

A trusted friend and advisor referred them to The Sales Tax People. 

Teamwork Makes the Dream Work

Our team met with the Pedersens on multiple consulting calls to review their sales activities and discuss their options for managing their compliance. This included a thorough nexus and risk analysis on all fronts. From there, we tackled compliance state-by-state. By doing so, we strategically set them up for future success everywhere they did business. 

Our approach involved work from multiple experts and continued communication with the Sports Research team. We wanted them to feel confident and supported about every business decision they made. 

The Results? Better Business Health

 “Thank you! Without you guys, I’d be crying in my closet.” -Marie Pedersen, CFO

No tears here, only a healthy, compliant sales tax strategy. After several years of managing the compliance for Sports Research, we have helped them save over $4 million dollars. Much of that money could have been lost to fees, penalties, and miscalculations.

Coburn’s Supply Company helps homeowners and professionals create stunning spaces with the latest technology and designs for kitchens, bathrooms, HVAC systems, and more. In the last 90 years, they have established over 60 locations across the Gulf Coast. Despite that massive growth, they’ve maintained the same level of quality customer service that you expect from local businesses. From supplying professionals with the best equipment to dazzling homeowners in their sparkling showrooms, Coburn’s is the place to go for new builds and remodeling projects. 

When the Auditors Come Knocking

If you’re a company the size of Coburn’s, you’ll end up on the shortlist for state tax auditors at some point. It was a matter of when, not if, Coburn’s would be audited. They were facing over $1,000,000 in sales tax liabilities in Louisiana. According to the state, Coburn’s underreported their sales tax or did not collect the right rate of sales tax. They reached out to the Peisner Johnson team to help them navigate this audit. 

Renovating the Reconciliations

The team at Peisner Johnson analyzed the available data to determine exactly where sales tax might have been misreported or miscalculated. We found many tax reconciliation errors. The state looks at gross sales when determining taxable revenue. Multiple sales that were not Louisiana sales contributed to the total gross sales for Louisiana. Beyond that, there was a huge opportunity to identify sales and certificates that would increase the number of sales that should have been tax-exempt. 

Peisner Johnson really comes in clutch during projects like this because it’s extremely tedious and time-consuming. While the team at Coburn’s had already started making headway on this audit, they didn’t have the time or resources to review the transactions and find the documentation needed the way our team could. We could get it off their plate and get them real results. 

By leveraging exemptions, finding documentation, and utilizing our thorough understanding of the state’s tax laws, we were able to lower Coburn’s tax liability to just over $100,000.  

Stronger Together

Even with a strong internal finance team like Coburn’s, the idiosyncrasies of sales and use tax law can cause issues that result in huge tax liabilities. Partnering with the sales tax pros at Peisner Johnson alleviates the stress of the unknown and empowers teams to focus on their core strengths while we expertly manage sales tax returns alongside their own efforts. 

“[Peisner Johnson] was able to streamline our sales tax process and process the information confidence. This, in turn, provided additional time for us to focus on other projects,” says Paul Lee of Coburn’s. Getting the right tools in place meant that Coburn’s team could tackle other areas of their business and confidently leave the audit in our teams’ hands. In fact, one auditor even told Lee that “their state actually takes courses from Peisner to keep updated on current topics.” Who wouldn’t want the people training auditors on their side during an audit? We know what they are looking for and how to save you the most during an audit.