About the client
The company is a US-based tile manufacturer whose parent company is a $1B European tile retailer.
In 2019, a PMBA Trusted Partner secured a client with complex U.S. tax compliance needs. This partner was also focused on providing his clients with proactive and strategic services beyond traditional compliance. So, shortly after the relationship began, the partner contacted PMBA to help identify possible value-add opportunities.
During the consultation, PMBA helped the CPA identify several options, including the Federal R&D Tax Credit, which the client’s prior returns failed to include.
After explaining the additional opportunities with their client, the CPA partner connected them with PMBA to begin a multi-state nexus and credit review.
PMBA worked on all projects concurrently to have the information available for the 2019 tax filing. The project yielded:
- A $40,000 Federal R&D tax credit (unfortunately, the client did not qualify for the state tax credit)
- An $80,000 state inventory tax credit
- Approval from the state to apply $75,000 of hiring credits on their 2019 tax return. The client untangled a web of challenges regarding site hiring credits earned – but had never previously claimed – over an eight-year period.
- An amendment of historical tax returns to recover $400,000 in missed tax credits
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