Personal Property Tax Audit Representation

Whether it is responding to a single audit or assisting with the development of a comprehensive strategy for both current and future audits, INTAX professionals are available and ready to advocate on your behalf with personal property tax audit representation. We will make absolute certain that the impact of any personal property tax audits is minimized for your business.

The Importance of Business Personal Property Audit Services

Faced with budget shortfalls, taxing authorities are increasingly reliant upon aggressive personal property tax audit programs to generate additional tax revenue. Many authorities utilize third-party providers that are incentivized via contingent fee arrangements, which often produce larger audit findings. The authorities that process audits internally are developing more comprehensive audit programs, executed by staff who are oftentimes overworked and undertrained.

At INTAX, we have found that audit adjustments are often most beneficial to the taxing authorities. The burden of proof is on the taxpayer to disprove any adjustments. However, many taxpayers are unsure how to adequately fight the adjustments. Disproving adjustments often requires a deep knowledge of the jurisdiction’s statutes and the margin to research, develop, and document a case. Many taxpayers do not have the margin or expertise to challenge incorrect assessments adequately and effectively.

Our professionals can assist at any stage of the audit process – from the initial data collection and site visit to handling all direct communications with the auditor. We are most often engaged to challenge an audit assessment once it has been issued by the authority.

Audit Successes

$2,900,000+ Saved

A Canadian multinational telecom and data networking equipment manufacturer engaged INTAX to contest the findings of a personal property tax audit in Northern California. The audit appeal spanned multiple years and many negotiations with the jurisdiction ensued. We disputed several issues, including the taxation of R&D equipment, service spares and various leasehold improvements. Additionally, we were able to adjust the useful lives being applied for a more favorable depreciation adjustment. Total personal property tax savings for all years under audit exceeded $2,900,000.

$2,800,000+ Saved

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.

$1,700,000+ Saved

A Kentucky metals manufacturer engaged INTAX to appeal an audit assessment that resulted in an additional tax liability of more than $1,900,000. We identified a significant portion of the assets that were misclassified by the auditor as non-manufacturing. In addition, we proposed an alternative methodology of calculating the value of inventories and supplies on hand. All positions were eventually accepted by the jurisdiction. Total personal property tax savings for all years under audit exceeded $1,700,000.