CLIENT
DMA’s client is a large US-based manufacturer in the healthcare industry with critical operations in Texas. The company plays a key role in producing essential medical products used across the country, operating under demanding regulatory and production standards.
CHALLENGE
Amid an industry-wide disruption that drove a sudden surge in demand, the client was forced to rapidly increase production. At the same time, they were undergoing a Texas sales tax audit and lacked the internal resources to manage it effectively. With much of their team focused on supporting heightened production needs, the client faced a preliminary audit assessment of nearly $5.5 million and needed help identifying additional savings opportunities.
SOLUTION
DMA stepped in on a contingency basis to help close out the audit and identify additional refund opportunities. With the client’s subject matter experts unavailable due to production demands, DMA relied on over 20 years of institutional knowledge from prior audits and deep familiarity with the client’s manufacturing operations.
To overcome limited access to documentation and personnel, the team employed creative research techniques—including satellite imagery and Google Earth historical views—to determine whether the project was related to new construction (which qualifies for exemption in Texas) or taxable remodeling. DMA also performed part-by-part research to determine usage and exemption eligibility, effectively substituting for unavailable plant personnel.
RESULT
After the auditor issued an initial assessment of nearly $5.5 million, the client’s internal team was able to reduce the amount to a $150,000 refund by applying their knowledge of exempt purchases and prior audit experience. From there, DMA took over and conducted an in-depth review that brought the total refund to $2 million—representing an additional $1.9 million in tax savings beyond what the client was able to accomplish on its own, plus interest.
WHY DMA
DMA’s longstanding relationship with the client proved instrumental in the success of this engagement. Having supported them through multiple ownership transitions and years of audits, DMA brought deep institutional knowledge of the client’s operations, tax reporting practices, and manufacturing environment. That continuity allowed DMA to quickly step in and perform detailed, nuanced analysis—even with limited access to client personnel or documentation. Additionally, DMA had previously worked with the same auditor on a prior audit for the client, creating a foundation of trust and accelerating the resolution process. From their familiarity with Texas-specific tax rules to their ability to think creatively—using tools like satellite imagery to validate exemption claims—DMA delivered critical value when it mattered most.
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