An additional $1 million was able to be recouped during our audit claim due to our comprehensive approach when conducting our marketing cost audits. Prior to submitting our client’s marketing cost audit claim, we conducted a thorough analysis and review, where we identified tax reimbursement opportunities available. We added tax reimbursement to our marketing cost audit claim, allowing our client to recoup an additional $1 million of the $9 million in total refund claimed and value-added directly to our client’s bottom line.
Client
Mid to Large-sized E&P
Industry
Oil and Gas
Project Timeframe
Audit Claim Period – 3-5 years; Completed case in 4 years
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 last four years (statute).
Revenew’s Approach
A simple approach of checks and balances. Our goal is to retrieve the most refunds for our clients. We review all filings meticulously to set our client's marketing cost audits up for success on the front end. Revenew reviews prior tax filings against production reporting, marketing contracts, etc., to verify if severance taxes have been taken correctly from a compliance standpoint. Address errors and areas of concern and identify and capture additional opportunities prior to audit claim proceedings, ensuring the best possible outcome for our client.
During the research/checks and balance phase of our review, we reviewed our client’s marketing contracts, and we realized they were not calculating and taking tax reimbursements correctly. We identified the leases tax reimbursement affected. We corrected reporting methods and practices for future severance tax filings and added tax reimbursement as an additional scope to our planned marketing cost audit claim.
Outcomes
Revenew ensured our client’s reporting was compliant going forward and recouped an additional $1 million of the $9 million in total refund received from Revenew’s audit scope, creating additional value add and revenue directly to our client’s bottom line.