Based in Ripon, Wis., USA, Alliance Laundry Systems LLC is a leading North American manufacturer of commercial laundry products and provider of services for laundromats, multi-housing laundries, and on-premises laundries. Alliance, which also maintains an office and manufacturing facility in Wevelgem, Belgium, offers a full line of washers and dryers for light commercial and consumer use as well as large frontloading washers, heavy duty tumbler dryers, and finishing equipment for heavy commercial use. The company’s products are sold under the well-known brand names Speed Queen®, UniMac®, Huebsch®, Cissell®, and IPSO®.

Situation

Alliance Laundry Systems faced a four-year sales and use tax audit by the state of Wisconsin. The company was surprised to learn it faced a proposed sales and use tax assessment of over $100,000. The key members of the Alliance Laundry Systems team were not with the company during the years under audit.

Strategy

With a strong understanding of sales and use tax technical issues and audit procedures, Wipfli stepped in to provide Alliance Laundry Systems with much-needed expertise and assistance. Wipfli’s state and local tax experts closely scrutinized the state’s analysis of Alliance’s purchases. The team conducted a comprehensive review to ensure that Alliance’s transactions were properly reported. In less than two months, Wipfli identified errors in the proposed adjustments, resulting in significant reductions to the current assessment, while uncovering new refund opportunities. The team also helped Alliance establish better processes and procedures to improve future sales tax reporting.

Benefits

Instead of a substantial tax bill, Alliance Laundry Systems secured a net refund of almost $100,000 at the audit level for a total overall identified savings of over $200,000. With improved processes in place, the company’s sales and use tax liability is now more accurately paid, and Alliance has greater confidence in its systems.