Recouping Cash Paid on Exempt Transactions
Staff turnover left limited resources available in an E&P company’s tax department. However, the large independent operator needed to find immediate cash recovery opportunities to support continuing operations.
Merit Advisors stepped in and reviewed three years of purchase transactions to identify overpaid taxes. After discovering the client was unknowingly paying sales tax on exempt transactions, Merit:
- Filed refund claims with vendors to begin recouping cash as quickly as possible
- Worked with vendors and the client to ensure future payments were taxed appropriately
Tax refund claims totaling $4 million were filed with vendors and state authorities. Recouped dollars began flowing back to the client within 90 days of identifying overpayments.