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