Communication templates

Follow-up on recent sales tax under-collection

Hi [Contact name],

We identified a recent issue that affected how sales tax was calculated on a [small/limited] number of your transactions. Due to [brief description of root cause, e.g., "an integration issue related to address mapping"], our tax engine under-collected tax on [number] invoices, representing approximately $[amount] in total sales tax.

A few important points to keep in mind:

As a reminder, under U.S. sales tax rules, the tax itself is owed by the buyer, not by [Customer name]. [Customer name]'s role is to remit that tax to the appropriate authorities on the buyer's behalf. When tax is under-collected at checkout, the remaining amount typically needs to be rebilled to the customer so it can be properly remitted.

No previously filed returns have been impacted. All affected transactions are recent [or: occurred between [start date] and [end date]], and the relevant returns have not yet been filed, so this was identified within a relatively timely window.

Our recommended next step is for [Customer name] to rebill the affected customers for the under-collected tax. To make this as straightforward as possible, we'll provide a template email you can use. In summary, that outreach will:

• Explain that there was a temporary issue in the tax calculation logic that resulted in under-collection
• Clarify that the sales tax remains due to the taxing authorities, and that [Customer name] serves as the collector and remitter on the government's behalf
• Ask the customer to either:
  - Pay the additional tax so it can be properly remitted, or
  - Provide confirmation that they have already self-assessed and paid the applicable use tax

We recognize that this is a sensitive customer communication, and we'll support you throughout the process:

• We'll share a clear, auditor-defensible outreach template
• We've attached the exact list of affected invoices, amounts, and jurisdictions for your records
• If helpful, we're happy to review your final email or letter before it's sent
• [For large exposures: We're available to participate in conversations with your customers if that would be helpful]

Please let us know who on your team should receive the customer outreach template, and whether you'd like to schedule a quick call to walk through the specifics.

Best,
[Your name]

Action required: Sales tax over-collection identified

Hi [Contact name],

We identified an issue that caused sales tax to be over-collected on [number] of your transactions. Due to [brief description of root cause], our tax engine over-collected approximately $[amount] in total sales tax between [start date] and [end date].

Here's what this means for [Customer name]:

The over-collected tax needs to be returned to your customers. You have a few options for how to handle this:

1. Issue credits on future invoices (works well for repeat customers)
2. Process direct refunds (required for one-time customers or large amounts)
3. A combination approach based on customer relationship and amount

We've prepared a detailed breakdown of affected transactions to help you determine the best approach for each customer.

Filing implications:

[If tax not yet remitted:]
Since the affected returns haven't been filed yet, we'll simply report the correct amounts on your upcoming filings. No amendments are needed.

[If tax already remitted:]
Since tax was already remitted to [jurisdiction(s)], we'll need to file amended returns with claims for refund. This process typically takes 3-6 months. We can coordinate the timing of customer refunds based on your cash flow preferences.

Next steps:

1. Review the attached transaction detail to understand the impact by customer
2. Decide on your refund approach (credits vs. direct refunds)
3. We'll provide refund notification templates for your customers
4. [If applicable: We'll prepare and file amended returns]
5. We'll track the process through completion

We're here to support you through this process. Please let us know if you'd like to schedule a call to discuss the best approach for your business.

Best,
[Your name]

FYI: Minor sales tax calculation issue identified and resolved

Hi [Contact name],

We wanted to make you aware of a minor sales tax calculation issue that affected [Customer name]'s account between [start date] and [end date]. 

What happened:

Due to [brief description of root cause], our tax engine [under-collected/over-collected] small amounts of tax across [number] transactions. The total exposure for your account is approximately $[amount], with an average of $[amount] per transaction.

Why we're not recommending customer outreach:

Given the small dollar amounts per transaction (averaging $[amount]), attempting to recover these amounts from your customers would be impractical and likely cost more in administrative time than the tax amounts involved.

Instead, we recommend treating this as an audit-risk issue:

• The issue has been fully resolved as of [date]
• The likelihood of discovery is low (would only surface if a specific customer is audited)
• We've documented everything for your records
• If this ever comes up on audit, we'll provide full support and documentation

What we've prepared for you:

• Detailed transaction-level documentation
• Root cause analysis
• Timeline of issue and resolution
• Audit defense package (if needed in the future)

No action is required on your part. We're providing this information for transparency and your records. If you have any questions or concerns, please don't hesitate to reach out.

Best,
[Your name]

Sales tax sourcing correction required

Hi [Contact name],

We identified an issue with how sales tax was sourced for [number] of your transactions between [start date] and [end date]. Due to [brief description of root cause, e.g., "an address hierarchy logic error"], tax was collected and remitted to [incorrect jurisdiction] when it should have been remitted to [correct jurisdiction].

The good news:

The total tax amount collected was correct - we just need to move it from [incorrect jurisdiction] to [correct jurisdiction]. This means there's minimal net impact to your business.

What needs to happen:

We'll file two sets of amended returns:

1. In [incorrect jurisdiction]: Amended return requesting refund of $[amount]
2. In [correct jurisdiction]: Amended return paying $[amount] (plus any applicable interest)

Timeline expectations:

• Amended returns will be filed within [timeframe]
• Refunds from [incorrect jurisdiction] typically take 3-6 months
• Payment to [correct jurisdiction] will be processed immediately
• We'll track both processes through completion

Your involvement:

Minimal - we'll handle the amendment process and keep you updated on status. You may need to approve the amended returns and payment, depending on your account setup.

We've attached detailed documentation showing the original sourcing, corrected sourcing, and net impact by jurisdiction. Please let us know if you'd like to schedule a call to walk through the details.

Best,
[Your name]

Exemption certificate applied - amended return required

Hi [Contact name],

We've received and applied the exemption certificate for [customer name]. However, since the certificate was received after transactions were processed and reported, we need to file amended returns to correct the reporting.

Transaction details:

• [Number] transactions were processed as taxable between [start date] and [end date]
• Total tax reported: $[amount]
• Exemption certificate received: [date]
• Exemption certificate is valid for these transactions

What needs to happen:

[If tax was collected:]
1. File amended returns in [jurisdiction(s)] to remove the exempt tax
2. Refund $[amount] to [customer name]
3. Track refund/credit from [jurisdiction(s)]

[If tax was not collected:]
1. File amended returns in [jurisdiction(s)] to remove the exempt tax
2. No customer refund needed
3. Track refund/credit from [jurisdiction(s)]

Timeline:

• Amended returns will be filed within [timeframe]
• [If applicable: Customer refund will be processed within [timeframe]]
• Refunds from jurisdictions typically take 3-6 months

We've updated our system to ensure [customer name] is properly marked as exempt going forward. Please let us know if you have any questions.

Best,
[Your name]

Important: Sales tax adjustment required

Dear [Buyer name],

We're writing to inform you of a sales tax adjustment required on your recent purchase(s) from [Customer name].

What happened:

Due to a temporary issue with our tax calculation system, we under-collected sales tax on the following transaction(s):

[Transaction details - invoice number, date, amount]

Total additional tax due: $[amount]

Important information about sales tax:

Under U.S. sales tax law, sales tax is the buyer's obligation. [Customer name] serves as the collector and remitter of this tax on behalf of the government. When tax is under-collected at the time of sale, the buyer remains responsible for ensuring the tax is paid.

Your options:

1. Pay the additional tax to [Customer name]
   We will remit this tax to [jurisdiction] on your behalf. Please remit $[amount] to [payment instructions].

2. Provide confirmation that you've already paid the use tax
   If you've already self-assessed and paid use tax on this purchase to [jurisdiction], please provide us with an affidavit confirming payment, and no further action is needed.

3. Pay the use tax directly to [jurisdiction]
   You may choose to pay the use tax directly to [jurisdiction] and provide us with confirmation of payment.

Timeline:

Please respond by [date - typically 30 days] to let us know how you'd like to proceed.

We apologize for any inconvenience this may cause. This was an isolated issue that has been fully resolved. If you have any questions, please contact [contact name] at [contact email/phone].

Sincerely,
[Customer name]

Customization notes:

• Replace [Buyer name] with your customer's name
• Insert specific transaction details (invoice numbers, dates, amounts)
• Provide your payment instructions
• Set an appropriate response deadline (typically 30 days)
• Include your contact information

We recommend:

• Sending via email with read receipt
• Following up with phone call for amounts > $500
• Keeping detailed records of all communications
• Providing us with copies of responses received

We're here to support you through this process. If you'd like us to review your final letter before sending, or if you'd like us to participate in any customer conversations, please let us know.

Sales tax refund due on your recent purchase

Dear [Buyer name],

We're writing to inform you that we over-collected sales tax on your recent purchase(s) from [Customer name].

What happened:

Due to an issue with our tax calculation system, we over-collected sales tax on the following transaction(s):

[Transaction details - invoice number, date, amount]

Total refund due to you: $[amount]

Your refund:

[Option 1 - Credit:]
We've applied a credit of $[amount] to your account, which will be reflected on your next invoice.

[Option 2 - Direct refund:]
We're processing a refund of $[amount] to [payment method]. Please allow [timeframe] for the refund to appear.

[Option 3 - Choice:]
Please let us know your preference:
• Credit on your next invoice, or
• Direct refund to [payment method]

No action is required on your part [or: Please respond by [date] with your refund preference].

We apologize for this error. This was an isolated issue that has been fully resolved. If you have any questions, please contact [contact name] at [contact email/phone].

Sincerely,
[Customer name]

Customization notes:

• Replace [Buyer name] with your customer's name
• Insert specific transaction details
• Choose the appropriate refund option (credit, direct refund, or choice)
• Provide timeline for refund processing
• Include your contact information

We recommend:

• Processing refunds promptly (within 30 days)
• Keeping detailed records of all refunds issued
• Providing us with confirmation of refunds completed

If you need assistance with the refund process or have questions about the best approach for your business, please let us know.

Request for use tax payment confirmation

Dear [Buyer name],

We're writing regarding sales tax on your purchase(s) from [Customer name]:

[Transaction details - invoice number, date, amount]

Our records indicate that sales tax was not collected on this transaction at the time of sale. Under [State] law, if sales tax was not collected, the buyer is responsible for self-assessing and paying use tax directly to the state.

Please complete and return this affidavit:

---

USE TAX AFFIDAVIT

I, [Buyer name], hereby certify under penalty of perjury that with respect to the purchase(s) described above:

☐ I have self-assessed and paid use tax to [State] on this purchase
   Date paid: _______________
   Amount paid: $_______________

☐ I am exempt from sales/use tax on this purchase
   Exemption certificate number: _______________
   Exemption certificate attached: ☐ Yes

☐ The property was resold and sales tax was collected from my customer

☐ Other (please explain): _________________________________

Signature: _____________________
Name: _____________________
Title: _____________________
Date: _____________________

---

Please return this completed affidavit to [contact email] by [date - typically 30 days].

If you have not paid use tax and are not exempt, you may:
• Pay the use tax directly to [State], or
• Pay the tax to [Customer name] and we will remit it on your behalf

If you have any questions, please contact [contact name] at [contact email/phone].

Sincerely,
[Customer name]

URGENT: Sales tax incident requiring executive attention

[Executive name],

I'm escalating a sales tax incident that requires executive attention and decision-making.

Situation summary:

• Issue: [Brief description]
• Root cause: [Brief description]
• Affected customers: [Number and names of key accounts]
• Financial exposure: $[amount]
• Time period: [Start date] to [end date]
• Filings impacted: [Yes/No and details]

Customer impact:

• [Customer name]: $[amount] exposure, [specific concerns]
• [Additional customers as needed]

Current status:

• Issue resolved: [Yes/No and when]
• Customer(s) notified: [Yes/No]
• Remediation plan: [Brief description]

Decisions needed:

1. [Specific decision point]
2. [Specific decision point]
3. [Specific decision point]

Recommended approach:

[Your recommendation with rationale]

Risks:

• [Key risk 1]
• [Key risk 2]
• [Key risk 3]

I'm available to discuss immediately. Please advise on how you'd like to proceed.

[Your name]