Case Study
Correcting a Sales Tax Software Implementation Error Before It Escalated
Company H
A rapidly growing international consumer products company selling primarily through its own U.S.-facing e-commerce platform.
The Challenge
To support its U.S. expansion, Company H implemented a well-known sales tax automation platform integrated directly into its online sales system.
The software was powerful. It calculated tax rates in real time and generated required returns across multiple states.
But early into implementation, inconsistencies began to surface.
Upon closer review, the company discovered that:
- Transactions in certain states had been double counted
- In other states, taxable sales had not been captured at all
- Returns had been filed based on flawed data
- Over-collections occurred in some jurisdictions
- Under-collections occurred in others
The total potential exposure exceeded $200,000 — and with the company’s rapid growth trajectory, the issue would have compounded significantly within months.
The technology was functioning.
But the configuration and oversight were not.
At that point, the company’s outsourced accounting firm recommended Miles Consulting Group.
The Solution
MCG was brought in to provide independent strategic oversight.
Our team conducted a comprehensive review of:
- The software configuration and tax mapping logic
- Nexus settings and state registrations
- Data feeds from the sales platform
- Historical filings across more than 15 states
- Variances between collected, reported, and remitted amounts
Rather than simply correcting returns, we focused on diagnosing root causes.
We identified where implementation assumptions did not align with state-specific rules and where internal processes had failed to validate output.
MCG then:
- Reconciled historical transaction data
- Prepared and filed amended returns across 15+ states
- Mitigated potential penalties
- Implemented corrective configuration changes
- Established a forward-looking compliance control framework
Automation can execute calculations.
But it requires experienced judgment to ensure those calculations reflect regulatory reality.
The Outcome
Through targeted remediation and proactive communication with multiple state agencies:
Potential exposure exceeding $200,000 was significantly reduced
Amended returns were filed accurately and defensibly
Ongoing compliance processes were stabilized
The company avoided exponential growth of future liability
Most importantly, Company H regained confidence in its compliance infrastructure.
Instead of questioning whether its filings reflected reality, leadership could refocus on scaling U.S. operations — knowing its systems were aligned with the underlying rules.
MCG continues to support the company’s ongoing compliance to ensure that as revenue grows, risk does not grow with it.
Client Perspective
“Professionalism, responsiveness, and deep expertise”
I’d like to share our positive experience with Miles Consulting Group. Our company faced a complex and frustrating issue—sales tax returns that had been improperly filed by a third party. Miles Consulting Group stepped in to help us rectify these errors, and the results have been nothing short of outstanding.
From the start, the team impressed us with their professionalism, responsiveness, and deep expertise. What stood out most was their personalized approach. They took the time to truly understand our unique challenges rather than applying a one-size-fits-all solution.
Their ability to untangle a complicated, multi-state situation and provide a clear, actionable resolution was invaluable. They reviewed and corrected previous filings, ensured compliance with state regulations, and kept us informed every step of the way.
Miles Consulting Group removed a significant administrative and financial burden, allowing us to redirect our energy toward strategic initiatives.
To anyone considering hiring Miles Consulting Group for their sales tax needs: I highly recommend them. You can trust them to provide expert advice and exceptional service.”
