The Wisconsin Department of Revenue has used statistical sampling in its review of purchases. When Daryl reviewed the current audit report, he noticed that there were many transactions that were missing from the original sample. As he compared the original sample pick list to electronic records provided to the Department, Daryl realized that the client had paid sales tax on many transactions. After reviewing the purchases, he determined that many of the purchases qualified for sales tax exemptions. The supplier, who had been audited by Wisconsin previously, had defaulted all products in their taxability matrix to be taxable to be taxable in Wisconsin. Daryl worked with the supplier and a third party who did online purchasing for the client to get a data download of all products purchased on each invoice during the audit period. Daryl was able to work with the auditor and ultimately the appeals officer to document specific product that were exempt so refunds could be projected in the audit and secured directly from the vendor in post-audit periods.

Ultimately, the Wisconsin audit resulted in a refund for the client for the audit period. Additionally, they were able to secure refunds for subsequent periods, and have specific products noted as exempt for future purchases from that vendor. These products were not always specifically listed in the statutes or regulations, but the client received written guidance from the Wisconsin Department of Revenue via this audit that gave them support to claim these items in the future.