Case Study: an online ticketing service provider reduces a sales tax audit by 94% with BDO

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

An online ticketing service provider faced a significant challenge after a state taxing jurisdiction misinterpreted its business model, leading to an initial sales tax audit assessment of over $5 million. The company engaged BDO for its sales and use tax expertise to help dispute the excessive liability and explain the complexities of its digital operations and contracts.

BDO conducted an in-depth assessment and identified the root issue: the state was attempting to double-tax transactions. BDO's professionals communicated directly with the tax authority, explaining the client's business model and contracts. This solution resulted in BDO successfully reducing the client's sales tax audit liability by approximately 94%, down to about $300,000.

Online Ticketing Service Provider