Identification of Misclassified Assets Results in $2,800,000+ in Savings

Kentucky Specialty Chemical Manufacturer and Distributor

A Kentucky specialty chemical manufacturer and distributor engaged INTAX to appeal the audit findings at its plant in Western Kentucky. The audit findings spanned 4 years and resulted in a total liability of $3,500,000. Our review indicated that the auditor had misclassified a significant portion of the taxpayer assets as non-manufacturing. INTAX worked with the auditor to correct the classification of those assets and proposed changes to the valuation of spare parts and inventories. Total personal property tax savings for all years under audit exceeded $2,800,000.