Eliminating Exposure & Minimizing Future Liability

This Merit Advisors client is a publicly traded midstream company with a $9+ billion market cap.

Challenge:

  • The company faced multiple sales tax audits in Texas and exposure across multiple states after unknowingly buying equipment tax-free in error.
  • However, our client lacked the internal resources to defend against the audits.

Merit Solution:

  • Our sales and use tax team resolved the company’s unpaid tax liabilities with the help of our strong working relationships with auditors, which foster trust in the accuracy of our findings.
  • Merit secured a Texas direct payment permit allowing our client to avoid upfront sales tax, self-assess liability and pay the state directly.
  • Drawing on our oil and gas expertise, Merit built a model to help our client optimize self-assessments going forward.

Result:

After initially being engaged for audit defense, Merit continues to work closely with the company to ensure ongoing compliance.

$2.8 Million

Reduction in Liability

$2.5 Million

Recovered in Overpayments & Waivers

Rewards of Merit

Explore our case studies to see how Merit helps energy companies unlock trapped value.

Wiping Out Tax Liabilities for Non-Op Interests

Royalties & Non-Op
Case Study

This operator engaged Merit to minimize property tax liabilities for its mineral holdings by reducing the working interest values.

Fixing a Mineral Interest Mistake to Secure Big Savings

Royalties & Non-Op
Case Study

This large operator turned to Merit after a state Tax Commission error resulted in an unfair valuation.

Reducing Inflated Assessments the Competition Overlooked

Downstream
Case Study

Unhappy with its prior tax consultant, this petrochemical facility wanted a partner who could reduce its ad valorem assessments.