AN EXTENSION OF YOUR STATE INCOME & FRANCHISE TAX DEPARTMENT
A Fortune 500 technology company operating in the majority of state taxing jurisdictions engaged DMA to review its Texas Franchise Tax Reports for all statutorily open periods, including a Franchise Tax Report for an entity it had recently acquired. Due to timing and lack of internal resources, the taxpayer needed help.
The acquired entity and the client had previously utilized different third party firms to prepare and review their computation of the margin tax, specifically related to the computation and makeup of the Texas Cost of Goods Sold. The Texas Margin Tax has gone through a continuous evolution since the day it became law. Most recently, Texas has amended and reinterpreted several statutes and regulations concerning Cost of Goods Sold.
After our experienced Texas team reviewed the client’s filing methodologies, DMA approached them with several unique issues that resulted in meaningful savings for the four statutorily open tax periods. DMA provided a full-service offering, including preparing the amended returns, correspondence, attachments, and dealing directly with the Texas audit team during the claims review process.
DMA’s issues were substantiated on audit and resulted in the client saving over $4 million in tax, which represented 95% of their total tax paid. Furthermore, the issues identified and supported on audit were incorporated into future filings, resulting in additional millions of dollars in benefits received.
Our experienced team boasts on average over 20 years of jurisdictional experience. Our experts know the complexities of changing tax regulations in every state, and can apply them to your unique case. We collaborate and work alongside your team to amend returns, and deal with your state’s audit team throughout the entire claims review process.