During our meticulous examination, our team identified discrepancies in our client’s severance tax filings that could have led to a state audit. We promptly advised our client on the optimal course of action. Following our guidance, we notified and worked with the state to correct the reporting errors, thereby averting a potentially costly audit. As a result, our client avoided additional penalties and reduced their tax liability by $500K.
Client
Small to Mid-sized Operator
Industry
Oil and Gas
Project Timeframe
Six months
Revenew Services
Severance Tax Recovery & Compliance Reviews
Project Scope
Revenew’s team performed a comprehensive severance tax recovery and compliance review to assess if our client is filing compliance correctly and to identify missed incentives over the statute period.
Revenew’s Approach
During our review phase, our team identified discrepancies in our client’s severance tax filings that amounted to sizable penalties and led to a state audit. We identified the leases and reporting months that required amendments. Following our guidance, we notified and worked with the state to correct the reporting errors, thereby averting a potentially costly audit. While working with the state, Revenew identified missed incentives opportunities and were able to capture and perform the work in tandem with the states review.
Outcomes
Allowed our client the best opportunity for success by following our guidance and allowing Revenew to approach the state and carry out the work on the reporting errors. Able to use our state relationships to address concerns and mitigate costly audits. Allowed for Revenew to carry out the incentives opportunities amendments and get the state the sign off on it as a part of their review thereby reducing our client’s liability by $500K.