Case Study: Sales & Use Tax

Optimizing Tax Liability & Eliminating Exposure


A public midstream company with a $9+ billion market cap engaged Merit for audit defense. Merit continues to work closely with the company to ensure ongoing compliance.

Results for client


Reduction in Client's Liability


Recovery of Overpayments and Waivers


  • Client lacked the internal resources to defend against multiple sales tax audits in Texas.

  • Client faced exposure across multiple states after purchasing equipment tax-free in error.

Merit Action Plan:

  • Established and maintained strong relationships with auditors, fostering trust in the accuracy of our findings.

  • Secured Texas direct payment permit allowing the client to avoid upfront sales tax, self-assess liability and pay state directly.

  • Built model to help the client optimize self-assessments, drawing on Merit’s oil and gas expertise.

  • Quantified and resolved unpaid sales tax liabilities.

More Rewards of Merit