Reverse Income Tax Audit

States continue to revise their already complex tax codes to collect more revenue. Whether using a tax provider or preparing returns in-house, state tax-saving opportunities are often overlooked.

A state reverse income tax audit can uncover offsets, reduce tax assessments, and may even result in a refund.

Who Can Benefit?

Companies that paid substantial state income or franchise taxes or want to reduce current or future state tax payments could benefit from a reverse audit. The service is especially valuable for those who’ve experienced a state examination or that have any of the following:

  • Multistate or international sales
  • Growing operations and customer base
  • Diversified or new business activities
  • Recent merger, disposition, or other large transaction
  • Concerns over increasing state income or franchise tax liabilities

While state tax agencies may identify a company’s tax deficiencies, state tax professionals can help identify tax-saving opportunities.

How We Serve You

After understanding how a company conducts its business, we review previously filed federal and state tax returns to identify refund opportunities.

Areas of Potential Benefit

  • Method of filing
  • Apportionment
  • Special deductions
  • Tax credit opportunities

A report is compiled outlining each tax savings opportunity and any exposures identified through the review.

We’ll guide you through the audit process, quantify and discuss our findings, prepare and file claims or amended returns, and represent you in substantiating the refund claim and administrative proceedings with the taxing agency.

Companies will have final discretion over the pursuit of any particular refund or tax savings, and can decide on further action for resolving potential exposures uncovered through this process.

Our Team

We’ve conducted many successful reverse income tax audits. Our team includes industry leaders, former state tax auditors, and policymakers. You’ll also benefit from responsive, proactive service from our supporting specialties, such as Dispute Resolution and Credits & Incentives.

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