Case Study: Sales & Use Tax

Recouping Cash Paid on Exempt Transactions

Recouping Cash Paid on Exempt Transactions

CHALLENGE

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 SOLUTION

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

RESULT

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.

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CHALLENGE

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 SOLUTION

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

RESULT

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.

The Rewards of Merit
$4
million
Claims filed with vendors and state authorities