Successful Audit Defense for an Industrial Manufacturer

Highlight:

Key audit reduction of $1.1 Million within 120 days.

Overview:

The client is a large industrial manufacturer, based in Indiana, with nexus in all states and domestic annual revenue of $3.2 billion. The client’s tax team is comprised of three professionals with a natural bias towards direct tax compliance activities. The client typically has over thirty (30) indirect tax audits open at any given time and was concerned that the indirect tax function required outside expertise.

Scope of Services:

The client published an RFP to identify a partner to assist with this compounding issue. Tax Matrix was awarded the assignment after a thorough RFP process. The solution involved assigning a member of our client engagement team to work full-time for two months assisting with audit defense activities such as fixed asset reconciliations, sales and use tax research, audit strategy and meeting with internal stakeholders and the state audit team. Upon engagement, we immediately agreed upon a priority path with our client.

Solution:

By engaging Tax Matrix to drive the audit defense function, the client immediately benefited from our team’s 400+ years of sales and use tax experience at the most critical time – while under audit. By owning the project, we were able to drive process efficiencies and help the client close their six (6) largest audits during the engagement.

Success:

• $1.1 Million reduction in Audit amount
• Quick Turnaround time
• Consistent conversation and approval process to keep the client in charge of the situation