CLIENT:
Our client is a manufacturer of industrial products and equipment.
CHALLENGE:
Our client encountered various challenges that prompted them to seek DMA’s expertise and support. There was a notable timing discrepancy in their audit processes, with partnership audits concluding several months ahead of the consolidated parent’s final determination. This misalignment presented complexities in their overall tax management. The sequence of finalization was out of sync, with earlier tax years being concluded before addressing the later ones, resulting in intricate tax attribute tracking issues.
Adding to the complexity, numerous state and local returns required dual amendments, further intensifying their tax compliance efforts. Notably, the 2016 audit primarily revolved around changes related to the foreign tax credit, necessitating amended returns in specific states to address statute closure requirements.
SOLUTION:
DMA addressed these challenges by overseeing the filing and tracking of all federal changes spanning multiple years and cycles. In instances where tax returns required dual amendments to align with revised federal returns and the conclusion of federal audits, the DMA team utilized our streamlined internal Excel-based system. This approach not only upheld strict compliance standards but also optimized our client’s financial results. In addition, we were able to extend a discount to our client for the second filing, emphasizing our unwavering dedication to cost-effectiveness and operational efficiency.
RESULT:
Thanks to DMA’s customized solution, our client gained a holistic and hassle-free method for reporting federal adjustments across numerous years and jurisdictions. Our meticulous preparation included detailed schedules that clearly demonstrated the seamless transfer of tax attributes into our client’s current year returns, improving overall accuracy and compliance. In addition, DMA’s expertise enabled us to develop a deep understanding of our client’s tax , positioning them for better management of future RAR cycles and other potential federal changes. This not only successfully addressed our client’s immediate concerns but also delivered a dependable and flexible strategy for continuous tax management.
WHY DMA?
Choosing DMA as your RAR (Revenue Agent Report) partner allows you to seamlessly connect all tax years within a specific jurisdiction, enabling the tracking of tax attributes and facilitating quick adjustments once data is integrated into our Excel-based template system. Our system is equipped to handle multiple amended returns per year, ensuring flexibility and efficiency in managing tax filings. Our RAR team carries significant industry experience through every engagement, ensuring that your project will be completed with accuracy and strict adherence to all reporting guidelines and regulations. When you choose to work together with DMA, you are choosing expertise, precision, and a commitment to delivering exceptional results.
State Income & Franchise Taxes Done Right
Find out how DMA can help you with amended state income returns.