Reducing Audit Assessments & Recovering Overpayments

Challenge:

  • The company had implemented third-party software incorrectly, causing a major error in calculating sales and use taxes charged to its vendors and resulting in several “suspended transactions” which could not be processed.
  • Facing multiple sales and use tax audits, the company had no staff available to manage the process.
  • Our client was also aware of a significant amount of overpaid taxes that needed to be identified, captured and included in the audits.

Merit Solution:

  • Merit represented the company through four sales and use tax audits, and reviewed each one for overpayments.
  • Applying our technical expertise, Merit corrected the implementation of the third-party software package to ensure the suspended transactions were taxed properly.
  • Our sales and use tax team negotiated voluntary disclosure agreements with two states to mitigate some of the taxes, penalties and interest due.

$22 Million

Reduction to Four Audit Assessments + Overpaid Sales & Use Taxes Recovered

$2.9 Million

Penalties & Interest Saved

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.