Client: Fortune 500 Food Retailer
Challenge: File Property Tax Returns in Time in More than 100 Jurisdictions
A Fortune 500 food retailer, with annual sales of more than $3.8 billion, asked AccuVal to help prepare and file its annual personal property tax returns for more than 100 jurisdictions, on time.
In reviewing the company's personal property, AccuVal determined that its tax assessment exceeded the actual value of the property by more than $24 million. The taxpayer was not taking full advantage of available statutory exemptions and was reporting exempt property as taxable.
AccuVal developed a strategy that would yield substantial tax savings and reduce property tax liabilities in future years. In addition to evaluating the overtaxed assets, AccuVal recommended expanding the project scope to include:
- Reclassifying certain assets to take advantage of available tax exemptions
- Identifying assets that would qualify for faster depreciation
- Establishing a method for filing tax returns on time and avoiding costly penalties
AccuVal did more than just solve the company's immediate problem of meeting its tax filing deadlines. By reviewing, evaluating and reclassifying certain assets, AccuVal was able to deliver tax savings of more than $1 million. The firm also simplified the tax preparation procedure and filed over 100 returns on time, which allowed the company to stay focused on daily business operations. The success of the engagement led the company to outsource its property tax compliance and consulting work to AccuVal.
A broad knowledge of applicable tax law, including strategic use of cost segregation. Decades of experience in property valuation, and construction design and engineering. That's The AccuVal Advantage™ at work.