Case Study L
Client L (food manufacturer) received a sales tax refund of $86,553.52.
This case study is performed on an actual client who is a manufacturer in New York City. They are a Chinese food manufacturer of noodles, wrappers (food), bean sprouts and fortune cookies. Wonton sells their products to restaurants and distributors. They also sell their manufactured food products to be incorporated into other food. They do not sell their product directly to individuals or consumers but there is a middleman of some sort depending on the route and the goods are always manufactured for resale.
The refund included sales tax paid for their software system, fork lifts, pallet jacks, trucks and trailers. NY State partially denied the submission request for a refund for waste removal, security camera system, and reconstruction of a pipe. Their reasoning in summary is that the denied items are not directly or necessary for the manufacturing process. Client L received a sales tax refund check from New York State in the amount of $86,553.52.