Reverse Tax Audits

Reverse tax audits are internal audit reviews of previously filed tax returns and previously closed tax audits that remain open pursuant to a Statute of Limitations (SOL).  These reviews can be structured to focus on tax benefit opportunities, tax exposure awareness, or both and are a very cost efficient "add-on" service to the Amended State/City Income Tax Returns service.  Of course, this service can also be provided independently from any other service to provide you with the comfort of knowing that you have had an independent second set of eyes review your company’s prior tax filings and tax audits.  Therefore, EMD Tax Consulting is proud to provide you with world-class reverse tax audits for your Income, Sales/Use and/or Property tax groups. 

Tax Benefit Opportunities

This service is designed to thoroughly review previously filed tax returns and previously closed audits that are still open within the SOL with the specific goal of identifying refund opportunities, assessment reductions and other miscellaneous increases to tax benefit attributes (i.e., Net Operating Loss carry-forwards, Credit carry-forwards, etc.).  These tax benefit opportunities may be generated through errors, omissions, misinterpretations, retroactive tax law changes and/or court case rulings, etc.

This is a cost effective add-on service to the Amended State/City Income Tax Returns service because sufficient tax benefits may be generated to cover or exceed the cost of that service, resulting in a “net” cost of ZERO to have all of your amended tax returns completed.  In addition, often times this service may be available for a contingency fee, which means that you could also receive this service for a “net” cost of ZERO!

Tax Exposure Awareness

This service is designed to thoroughly review previously filed tax returns and/or potential nexus issues (where tax returns were not filed) that are still open within the SOL with the specific goal of identifying tax assessment exposures, tax attribute exposures (i.e., Net Operating Loss carry-forwards, Credit carry-forwards, etc.), unclaimed property exposures, Voluntary Disclosure Agreement (VDA) opportunities, Amnesty Program opportunities, etc.  These tax exposures may be generated through errors, omissions, misinterpretations, retroactive tax law changes and/or court case rulings, miscommunications or lack of communication between the tax/legal/accounting departments, etc.

This service is an important part of planning for your annual tax reserve and FIN 48.  Like most tax departments, if you are operating with a lean staff, new staff, or even an experienced staff tasked with a large volume of tax compliance, this is an absolute must.  Be well prepared and reduce the risk of taking an unexpected hit to your effective rate!