This worldwide management consulting firm conducts qualitative and quantitative analysis to evaluate management decisions across public and private sectors. They are considered by many to be the most influential consulting firm in the world due to their experience working with top corporate executives at large and well-known companies across the globe. For over 50 years, they have published a popular quarterly publication. They also fund their global research organization, publish reports on management topics, and have written many influential books on management.
As a respected and experienced consulting firm, this company understands the value that narrowly-focused, world-class consultants in their own right can offer. As such, they felt that bringing in a team like Ashland would either validate that they were covering all their bases or present new ideas from which they could benefit. They agreed to retain Ashland to review two of their larger states: Texas and New York.
A two-man Single State Specialist review team from Ashland visited the company’s offices in New York and conducted a four-day review of their returns. On the fourth afternoon, the team presented their findings along with the possible recovery amounts.
Aside from getting us large refunds, we now will be able to continue these returns with the new information that they gave us, which will save us taxes going forward. We won't have to pay a fee for that; Ashland is only being paid for the open years for which we got a refund, so we will benefit from their advice moving forward as well.
After verifying that there were no liability issues that would offset any possible refunds, Ashland recommended filing refund requests in both Texas and New York. Ashland identified possible recoveries of $1,400,000 due to a little-known adjustment that the State of Texas would allow. Jeff Thompson, who has been instrumental in recovering many millions of dollars for Ashland’s clients over the past 20 years, was aware of this position. Based on the issue, Ashland prepared amended returns for the four open years, and the consulting firm filed them with the state. Texas assigned an auditor to review the refund requests, and Ashland assisted the company in defending the position. The auditor approved the issues and the state subsequently issued a refund for the full amount requested.
During the Ashland review, we also identified a potential refund of approximately $500,000 in New York City tax. After verifying that no offsetting liability issues existed, Ashland recommended that the consulting firm file refund requests for the three years in which the refund was available. After approval, Ashland prepared the amended returns and the company filed them with the city. The New York City auditor assigned to the case approved the refunds in full, and the consulting firm received the refund checks.