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June 17, 2016

Appeal of Florida Assessment Eliminates Retailer's $1.6 million Tax Assessment

Client Profile

Industry: Retail
Annual Revenue: >$500 million
Entity Structure: Consolidated Group
Geographic Footprint: Southeast
Ownership Structure: Venture Capital Backed

CBIZ helped a retail through a state audit.Issue

A Florida state audit of a department store’s income tax raised concerns related to royalty, interest and administration expenses. The findings resulted in a $1.6 million tax assessment for the retailer.

Solution

Our team of state and local tax professionals worked closely with the department store to protest the findings. We evaluated the retailer’s intercompany transactions, analyzed cash flow and debt agreements and researched historical precedents to gather support for the retailer’s original filing position. The discoveries supported the validity of the retailer’s debt and claimed deductions. We drafted a statement of the taxpayer’s position and held an informal hearing that resulted in the complete removal of the assessment.

Outcome

Our state and local tax controversy experts resolved the $1.6 million tax assessment before formally progressing to the appeals stage, saving the department store from additional time and hassle of professional fees and potential litigation.

Support For Your State & Local Tax Position

Learn how our team helps you resolve your concerns, ensuring you don’t over- or underpay.

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Copyright © 2016, CBIZ, Inc. All rights reserved. Contents of this publication may not be reproduced without the express written consent of CBIZ. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).

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