Our client’s business was growing at an unexpected rate, but as is the case with many quickly growing enterprises, monthly cash flow can be difficult to maintain. To free up cash for its expanding operations, our client asked us to explore every possible way to lower its anticipated tax liability. Our client ultimately chose a tax minimization strategy that was substantiated by the law, but was still unproven in tax court at that point in time.
As anticipated, the IRS audited our client and all its related businesses, and the client asked us to defend its strategy aggressively and minimize its pending tax liability of more than $850,000.
The Right Solution
Throughout the audit process we documented every step we took and every transaction made, including the supporting case law we used to support our client’s tax strategy. Our arguments successfully swayed the auditor to agree with the majority of our points and to eliminate nearly $500,000 from the total tax liability demanded.
Above and Beyond Results
We referred our client to a tax attorney who is very familiar with the IRS appeals process and gave our client the best chance to prevail against the audit. By collaborating closely with the tax attorney, we further reduced the client’s total tax liability to less than $150,000.