Client A – Sales Tax Manager

 

Client A had recently purchased a manufacturing operation in another state in the same product line as their two manufacturing facilities in their home state. Although Client A had an established financial center in their home state that managed the sales and use tax compliance functions, they knew their current and future needs required the expertise of a multi-jurisdiction sales tax professional.

 

Tax Abilities was hired as Client A’s outsourced tax solution to manage the complexities of the various states’ sales tax regulations applicable to manufacturing and provide support and advice to the client’s tax and finance team.

 

The scope of work was to identify sales and use tax paid on expenditures qualifying for refund. This required Tax Abilities to:

  • Use its deep knowledge of the industry and its accounting practices to formulate a review plan;

  • Communicate the plan to Client A and establish a timeline relevant to the states’ statutes of limitation for recovery of tax;

  • Identify and collect all necessary system and financial data;

  • Analyze and document all information necessary to support a refund request;

  • Prepare and submit a timely refund request to the state’s revenue department; and

  • Be available and capable of providing additional information to the state.

 

The result was Client A received a seven figure refund within 6 weeks of Tax Abilities filing the request. A bottom line boost with stellar results, at lightning speed, in the very difficult and grossly misunderstood arena of sales tax!

 

What is Tax Abilities relationship with Client A today? It’s still going strong nearly 15 years later, with Tax Abilities managing all of Client A’s sales and use tax matters throughout the country, including being a key partner in growth plans and ensuring Client A’s tax strategy promotes fiscal and compliance health.

Client B – Fuel and Excise Tax Manager

 

Client B is a wholly-owned subsidiary of a national distributor, parent company located in another state.  Although Client B was managing its state and federal tax compliance functions, they knew their current and future needs required the expertise of a multi-jurisdiction fuel and excise tax professional to oversee each vehicle fleet.

 

Tax Abilities was hired as Client B’s outsourced tax solution to manage the complexities of the various states’ fuel tax reporting and registration regulations applicable to vehicle fleets and provide support and advice to the client’s tax and finance team.

 

The scope of work was to ensure the reporting and compliance functions were accurate and adequate and identify fuel and excise tax savings, if available. This required Tax Abilities to:

  • Use its deep knowledge of the industry and its accounting practices to formulate a review plan;

  • Communicate the plan to Client B and establish a timeline to implement necessary compliance improvements and capture fuel/excise tax savings relevant to both federal and state regulations and statutes of limitation;

  • Identify and collect all necessary system and financial data;

  • Analyze and document all information necessary for improved compliance;

  • Analyze and document all information necessary to support a refund request;

  • Prepare and submit a timely refund request to the IRS and state revenue departments; and

  • Be available and capable of providing additional information to all stakeholders.

 

The result was Client B, with Tax Abilities’ recommendations and guidance, implemented policy and procedure necessary to increase compliance, and received a six figure refund within 3 weeks of Tax Abilities filing the request.

 

Today, after more than 12 years since Tax Abilities’ first, outsourced project with Client B, our relationship continues with us managing all of Client B’s fuel and excise tax matters throughout the country, including being a key partner in asset acquisition decisions and ensuring Client B’s fleet management and tax compliance strategies and goals are current and fiscally sound.

Client C – Audit Defense Manager Outsourcing

 

Client C, a multi-billion dollar company, was experiencing tremendous growth, moving to new facilities and preparing for sale, when it received a notice from the state’s revenue department of an upcoming audit. Stretched thin and with so many irons in the fire, it requested a delay of the audit.

 

For fifteen months, contact with the revenue department was limited to signing waivers extending the statute of limitation. Eventually the audit examination commenced with Client C providing electronic data to the auditor. However, for nearly 6 months following the start, there was little contact between Client C and the auditor, other than the auditor providing work papers with an estimated liability of nearly a half million dollars. After receiving this shocking information, Client C outsourced audit defense to Tax Abilities.

 

In a short period of time, Tax Abilities systematically reviewed the work papers, identifying errors, inconsistencies in methodology and abnormalities. The result: the final liability was more than 50% less than the original estimated assessment.

 

Although pleased with the audit, there remained areas of the assessment in dispute with the department, where Client C asked Tax Abilities to pursue through the administrative appeals process. The result, after Tax Abilities provided statutory, legal argument, was a refund of additional money assessed to and paid by Client C – another victory!

 

With such success, the following audit (audit 2) of Client C was managed by Tax Abilities, whereby start to finish, the examination took 4 months instead of nearly 3 years resulting in a liability of 5 figures.

 

After the audits, Tax Abilities stayed on to fine tune Client C’s sales tax policy and procedure; configure the system’s tax matrix; establish fuel tax policy and procedure; and identify and capture property and excise tax credits and incentives.

"... I was especially impressed with the effort that you put into helping us understand how the various tax laws apply to our specific business. Not only were we able to recover monies paid in prior years, but we now have a very good understanding going forward."

R.C., CFO

National Culvert Producer

We engaged Taxabilities to help us with our ...Tax issues back in 2014.   At the onset of our project, Michael’s goal was to have our staff spend a minimal amount of time away from normal duties, and to have him do most of the research and tax filings.  Michael’s knowledge of tax code, communication skills and coaching skills brought our project to a successful conclusion  and his continued mentoring has made the ongoing tax reporting process a successful and financially worthwhile one.  I would highly recommend Taxabilities for anyone needing their services!

Nancy G., VP

State and Federal Credit Union

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PO BOX 1414, Windham, ME

P 207.572.4192