Defending an Oilfield Service Company Under Audit
A publicly traded oilfield service provider faced a $26 million sales and use tax audit liability. After more than 10 years of audits, the company had accrued over 25% in penalties and interest. Without a solution, its liquidity crisis would worsen.
Merit Advisors’ experts in audit liability and settlement services helped the client avoid bankruptcy by:
- Securing immediate reductions with the auditor to reduce liabilities
- Negotiating a settlement with the state that facilitated a closure of the audits, increased reductions and established a more attractive repayment structure
- Developing a new use tax compliance process to prevent future errors
The company saw a $17 million reduction in audit liabilities, including a waiver of all penalties and accrued interest.