STATE INCOME TAX COMPLIANCE ENGAGEMENT FOR FLEDGLING FORTUNE 500 TAX DEPARTMENT RESULTS IN ON-TIME COMPLIANCE AND TAX SAVINGS
Our client is a Fortune 500 global industrial manufacturing organization with close to $7 billion in revenue and more than 20,000 employees.
This long-time client had recently spun off a subsidiary and did not yet have a fully-functional tax department. They reached out to DMA’s compliance team requesting assistance in meeting Current Year Compliance obligations while continuing to build its tax team, which consisted of just two central full-time state income tax staff.
DMA’s compliance team worked closely with our client, utilizing the client’s current software and systems, to efficiently and accurately prepare and file over 250 returns in a timely manner. By utilizing our custom built return work papers and procedures, we provided our client with the most accurate returns possible, minimizing the notice work on the back end.
By handling this project through our unique remote co-sourcing service, we were able to provide our client with highly-experienced professionals to handle the work, and keep the expenses for this project to a minimum. We were also able to call upon state income tax specialists within DMA to ensure the client was getting the best expertise possible.
With less than 30 days’ notice, DMA came to the rescue. The co-sourcing engagement allowed the client’s state income tax team of just two people to focus on ramping up its tax team, while DMA’s compliance experts completed 272 returns and met the filing deadlines.
In addition to the actual compliance engagement, our state income tax team was able to provide our client with hundreds of thousands of dollars in tax savings strategies throughout the compliance process. After completion of the compliance project, the client asked us to continue on as an “extension of their tax department.” We went on to provide them with resources to help calculate their ETR, true up their deferred tax assets, streamline and automate their tax processes, conduct research projects and nexus studies, and created a plan to ensure a successful and less stressful filing season the following year.
DMA has a rich history of successful compliance engagements with large multinational companies including chemical manufacturers, consumer goods manufacturers, electronic device manufacturers, medical device manufacturers, software companies and pharmaceutical companies. DMA’s compliance work is done in the United States by DMA employees; never outsourced or off-shored, and can be conveniently co-sourced to ensure easy and seamless processing and filing.
“We were in a tough situation and really didn’t know how were were going to complete and file over 250 returns on time with a staff of just two. We reached out to the experts at DMA, who suggested a co-sourcing arrangement that was perfect for our situation. Not only did DMA’s team complete and file over 250 returns, they did so with little interruption to our team’s work flow. They were a true life saver!”