Case Study, Tax Services • Published 12/08/2016 Helping a Manufacturer Ensure Compliance with Complex State and Local Tax Regulations

Challenge

Our client provides industrial manufacturing services with safety and stability at the core of their business. Celebrating industry-recognized safety practices, this company knows the value of compliance. Despite adherence to many of the rules and regulations of their industry, industrial manufacturers can sometimes be unaware of the intricacies of state and local taxation on their business.

As a leading vendor in their industry, our client has established locations across the country. A multi-state company establishing a presence in Louisiana, our client experienced firsthand our complex system of state and local taxes. Subject to a parish sales tax audit that spanned over months, this client underwent an examination and eventual assessment that presented several challenges:

• Tens of thousands of dollars in funds owed to the government
• Significant penalties and interest
• An approaching deadline
• Strained in-house resources
• Limited familiarity with Louisiana state and local taxes

Our firm worked with the manufacturer to develop comprehensive and admissible objections to some of their findings. As a result of our firm’s involvement, the revised audit and response from the parish included a significant reduction in funds owed.

Gary Dressler
Tax Associate Director, P&N

 

Approach

With over 65 years of tax experience, our team members are highly knowledgeable about tax compliance and regulatory assessments. Postlethwaite & Netterville reviewed the examination report for all potential errors in the audit findings. Well-versed in compliance and regulation, P&N was able to identify areas for potential protest and submit these formally to the parish auditor. Our firm worked with the manufacturer to develop comprehensive and admissible objections to some of these findings. As a result of our firm’s involvement, the revised audit and response from the parish included a significant reduction in funds owed. The parish auditor requested further information regarding several protested findings and our firm will be working with this client to respond timely and comprehensively. In working with P&N throughout the audit response process, our client will know they have the support of a skilled team committed to reducing their risk.

Not only did we help our client solve their immediate problem by efficiently and accurately reviewing the audit findings and propose disputes, but in working together the client was exposed to the firm’s in-depth knowledge concerning state and local taxes for the state of Louisiana. The knowledge sharing that emerged as a result of this engagement can help our client to prepare and limit their regulatory risk looking into the future.

 

Results

Just like our client built their business on safety and dependability, Postlethwaite & Netterville has built its business on technical and regulatory knowledge. Together we worked to limit the client’s tax liability and establish vital tax protections. We helped this client with new and unfamiliar regulations, established a defense from risk, and created protection for them into the future.