Client Profile
| Annual Revenue: | +$100 million | | Industry: | Transportation | | Entity Type: | Private | | Geographic Footprint: | International | |
Issue
A railroad company with a presence throughout the United States and abroad sought to evaluate its sales and use tax obligations. One of the states in which it operated made significant changes to its sales and use tax exemptions, and in addition, the railroad company had unpaid taxes in several jurisdictions.
Solution
CBIZ reviewed schedules and supporting documents accumulated by the railroad’s internal tax team. We identified categories for confirmation of conclusions through our review of applicable tax law at both a state and local level. Our conclusions resulted in reductions of liabilities for past activity and created tax reductions on prospective purchases. As a result of our in-depth process, our team identified conflicts in statutory and regulatory guidance. We ultimately assisted the client in the anonymous voluntary disclosure process, enabling secondary confirmation of our conclusions with the applicable authorities.
Outcome
The analysis prepared by our team and confirmed through regulatory bodies, reduced the railroad’s unpaid taxes by more than $200,000 and provided for more than $50,000 in annual savings on a go-forward basis. In addition to the cash savings, the support provided to the railroad’s personnel as part of this process enhanced their understanding of the taxing structure in each jurisdiction, as well as the exemptions’ applicability to specific transactions.
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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).