IBM - Sales Tax

Chase had a series of Sales Tax Exempt locations and a series of reduced Sales Tax locations. When I started at Chase, there were multiple mini accounts payable areas that paid bills. Most of the big Chase Locations (buildings/Centers) paid their own bills. The people were trained on Sales and Use Tax and checked every invoice.

Then Chase established a new procedure where Bills were scanned, then sent to a central location where they were entered into the systems. Chase stopped checking and Verifying the sales tax accessed on invoices. Then NY State came in on a routine audit and found problems.

The Six Sigma Project involved getting refunds from the vendors when sales tax was either overpaid (at NYC Rate) for equipment or software in other locations. Connecticut and New Jersey were 6%, Delaware had no sales tax, Equipment and Software sent to Newport, NJ was free from Sales Tax. Some NY city locations were also Sales Tax Exempt. I worked with someone from the Chase Tax Department in NY City.

I had access to the Chase Corporate Accounts Payable system through a program called PMF - which allowed me to create lists of vendors and invoices that needed to be checked. A temp was hired to print out invoices. When an invoiced was suspect, I contacted the signor to verify the location where the invoice was originally shipped (for sales tax) and where it was first installed (use tax). Another factor was Chase signed a series of multiple software license agreements where they purchased "lots" of licenses at a discount to be installed as needed - the proper sales tax needed to be calculated and allocated. The project lasted for about 5 months and resulted in over $900,000 in refunds.

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