Case Studies
We offer comprehensive services ranging from sales and use tax training, to our specialty of defending and protecting the interests of businesses during sales tax audits.
Audit Defense & Payment Arrangements
Davis, Davis & Harmon LLC constructed a sales tax defense to resolve an audit that lingered over 12-months
RMI Construction on Inc. is a commercial and residential marble contractor based in Irving, TX which serves the DFW metroplex area. Annual sales average of $1,500,000 over the 4 years of the audit period. The company’s clientele includes restaurants, supermarket chains, gas station outlets, and residences. The company was selected for a routine Texas sales/use tax audit and chose their CPA firm to handle the audit.
Challenges
- RMI had been accessed more than $500,000 including penal ties and interest during the Texas sales tax audit.
- The taxpayer CPA engaged Davis & Davis to represent RMI and to effecti vely defend them during audit and redeterminati on phase of the sales tax audit.
- The auditor was not sympatheti c when asked to give more time after the audit had gone on for a year prior to Davis & Davis being engaged to assist RMI with the outstanding audit issues.
Strategy Leads to Big Win
Davis Davis & Harmon LLC (DDH) implemented an audit defense strategy which won over the auditors and saved the client millions.
DDH was engaged by a client to manage a routine sales/use tax and business/occupational license tax audit for the state of Washington. DDH took over the audit midstream and had to contend with a series of unwieldy audit schedules with unsubstantiated tax assessments and liabilities.
Capabilities
Proven Results
Davis Outperforms Goliath
Client was selected for a routine sales/use tax audit and hired a Big 4 consulting group to manage the audit. Because the audit lingered over five-years in the hands of the Big 4 firm, the auditor closed the audit reflecting a huge tax liability which was later appealed. DDH was hired during the appeals process to defend the audit.
Data Technology Meets Compliance
DDH was engaged by a Fortune 500 retailer and power-generation company to perform a sales tax compliance review to identify potential audit exposure, design the detailed transaction data file, improve their compliance process, and implement
audit sampling best practices.