The Problem: The Internal Revenue Service audited a mid-sized construction company. After completing the three-year audit, the IRS issued a Notice of Income Tax Changes that suggested a dramatic increase in corporate income, and resulted in a tax liability of more than $1.45 million. Convinced the IRS figures were incorrect, and frustrated by the inability of his Certified Public Accountant handling the audit to explain the proposed tax adjustments, the company president retained Sullivan Consulting.

The Sullivan Solution: A comprehensive review of the audit and financial accounting files uncovered over 100 errors contained in the notices issued by the Revenue Agent.  After filing a protest (appeal) petition with the IRS, the Revenue Agent agreed to reduce the corporation’s gross income, which eliminated our client’s tax liability and generated a $500,000 NOL Carry forward.

***

The Problem: A state taxation department conducted a sales tax audit on a small privately held company, assessing the sole proprietorship nearly $120,000 in back taxes, interest, and penalties.

The Sullivan Solution: A thorough examination of the state audit revealed more than 25 duplicate entries, miscalculations, taxation of uncollected funds, taxation of exempt sales, and other violations of state law and procedures corrupting the state’s figures.  Our client’s tax bill was reduced by more than 90%.

More information about Tax Audit