Uncollected or Incorrectly Remitted Sales Tax on Vehicle Sales

$150,000-$500,000 annually per mid-sized dealership (estimated 7-10% of selling price × transaction volume = millions in shortfalls across dealership networks) • $20,000-$75,000 annually per DMV jurisdiction from unreconciled tax shortfalls (7-10% of registration tax base across used vehicle volume; compounded across multiple dealerships) • For agencies, uncollected or under-remitted sales tax can represent 7-10% of the taxable price on each affected vehicle; at scale (e.g., 200-500 misreported deals per dealer per year across dozens of dealers), this can easily exceed $5,000,000-$20,000,000 in missed or delayed revenue plus audit costs and penalties exposure.

Business development representatives manually reconcile or sample deals from DMS exports against DMV data and tax returns using spreadsheets and ad‑hoc notes to identify under-collected or under‑remitted sales tax before approaching government agencies. • Manual Excel spreadsheets cross-referencing dealer tax receipts against registration forms; email follow-ups requesting corrected documentation; paper-based exception tracking; phone calls to dealerships to verify tax amounts • Manual spreadsheet reconciliation across multiple data sources (point-of-sale system, DMV records, trade-in valuations), email chains between sales and accounting teams to verify taxable amounts