Significant Reductions Made After Review of Statistical Sampling Audit

A large transportation manufacturer in Pennsylvania recently had its direct-pay tax rate percentage audited using a statistical sampling method. IntegriTax reviewed the State audit and realized that although the manufacturer had updated the tax rate they were paying, they had not updated the accounts they were supposed to be reporting. Through our findings, the client was able to recover more than $400,000 in overpaid taxes over a 36-month period. IntegriTax is currently working with this client on analyzing the State’s sampling methodology in order to remove a few items that should not be taxable. As a result of this study, the tax rate will be reduced further, thereby increasing the client’s refund.

Audit Reduction Yields Net Refund for Georgia Food Manufacturer

A food manufacturer in Georgia recently had a State audit with an assessment of approximately $50,000. After the client had exhausted all efforts in reducing the audit assessment, IntegriTax conducted an audit reduction review and successfully reduced the audit by approximately 50%. After reviewing the audit assessment, IntegriTax also conducted a sales and use tax overpayment review, which resulted in more than $300,000 in refunds for various types of manufacturing exemptions.

Successful Review Conducted at Multiple Wisconsin Packaging Plants

IntegriTax conducted an overpayment review for a large national manufacturer of paper containerboard and corrugated packaging at its six Wisconsin plants. Using our knowledge of Wisconsin sales and use tax laws and the Wisconsin Department of Revenue’s perspective on sales tax exemptions for manufacturers, IntegriTax found nearly $150,000 in sales tax overpayments at the largest plant. More than two-thirds of the potential refunds we identified were for machinery and repair parts, with the balance of our findings mostly in quality control, pollution control, and packaging supplies.

Audit Workpaper Review Turns State Assessment into Refund

For a Florida specialty door manufacturer that recently had a state audit, IntegriTax analyzed the audit assessment and advised our client not to close the audit because there was an opportunity to reduce the assessment by identifying overpayment credits and errors in the audit. IntegriTax staff took a plant tour to understand the entire manufacturing process and then conducted a detailed review of the client's fixed assets accounts and accounts payable records. After reviewing the final audit workpapers, we identified those transactions in the audit that should not have been assessed taxes as well as numerous overpayments to be included in the audit as credits. After working with state auditor to accept our findings, the original audit assessment amount was wiped out. The final audit resulted in a net credit that our client received as a refund check from the State of Florida.

Significant Reduction Made After Review of Statistical Sampling Audit

A porcelain tile manufacturer in Tennessee had recently been assessed for underpaid sales taxes after undergoing a state audit that used a statistical sampling method. IntegriTax analyzed the State's sampling methodology and then examined each audited item that was classified by the State as taxable. We found a number of items that were erroneously identified by the State as taxable and items that should have been credited. As a result of the errors we identified and credits we found, IntegriTax reduced the manufacturer's audit assessment by 89%.

Correcting Tax Status Results in $66,000 Refund

During a sales and use tax overpayment review for a chicken processing company in North Carolina, we found more than $66,000 in sales tax overpayments for dry ice pellets that were packed and shipped with the processed chicken. The client paid the sales tax on dry ice over the review period because the State had assessed state sales tax on the ice during the last audit by claiming that the dry ice pellets were taxable supply items. IntegriTax worked with the North Carolina DOR and succeeded in obtaining a refund on the dry ice purchases (among other items) because the dry ice pellets were not supply items but were tax-exempt packaging materials.

Georgia First: IntegriTax Convinces DOR to Exempt Large Components

IntegriTax conducted an overpayment review at several poultry processing plants in Georgia. During the review process, we discovered a significant amount of state sales taxes paid on purchases of large motors and pumps that were used to replace or repair pollution control equipment at the plants. IntegriTax successfully argued that large components for pollution control equipment qualified as pollution control machinery and equipment and, thus, were not taxable.

IntegriTax Training Draws Praise from High-Tech Company

A Georgia fiberoptic manufacturer engaged IntegriTax for assistance in training its staff. IntegriTax reviewed their current tax matrix, toured the manufacturing operations, and then provided sales and use training for the accounting and purchasing staff. An assessment of the training by those who attended was classified as "Very Good." The controller said that our training ". . . provided valuable sales and use tax key information that was both relevant and applicable to the manufacturing processes. . ."