Case Studies
We have helped our clients save money through developing strategies, experience professionals and the enthusiasm we feel to help our clients succeed. Listed below is one of the ways our SALT group providing tax savings for our client.
After successfully growing their technology company, the company was in the enviable position of being acquired by a national data processing firm. During the due diligence process, it was noted that the company had not filed sales and income taxes in all the states where they had visited clients for installation and training. The buyer estimated that the company would owe over $2 million in sales tax alone. KLR was consulted in the drafting of the Purchase Agreement to include the terms of the Voluntary Disclosure project that we would undertake on their behalf to clear all prior tax liabilities as a contingency of the sale. The buyer retained $2 million in reserve to pay the expected sales tax liabilities in 42 states. As a result of our research and negotiations with the state tax authorities, we were able to conclude the project with a total sales tax liability of approximately $900,000, less than half of what they expected to pay, with no penalties assessed. The money we saved our client more than covered their income tax liabilities as well.