Case Study: an online ticketing service provider reduces sales tax liability with BDO

Online Ticketing Service Provider cuts sales tax audit by 94% with BDO

The online ticketing service provider faced a significant challenge when a state tax jurisdiction issued an incorrect sales tax assessment of over $5 million, based on a misunderstanding of the company's digital business model and contracts with venues. The company engaged BDO's sales and use tax professionals to help mitigate this risk and reduce the liability.

BDO conducted an in-depth assessment and identified the root issue: the state was attempting to double-tax transactions. BDO explained the company's business model to the tax authority through direct dialogue and a detailed memo. This solution resulted in BDO successfully reducing the final sales tax assessment by approximately 94%, down to about $300,000, providing massive cost savings for the client.