Two recent court decisions involving employment tax refund claims -- and the likelihood that many companies are evaluating options to file similar (and timely) refund claims -- highlight some key considerations for companies when filing a claim.Recent Decisions
Tips for Filing Claims
While many employers have already filed similar claims to preserve their rights, others might be filing for the first time. In our experience, compiling relevant information to quantify the amounts at issue can be complicated due to the age of the claims, lack of institutional knowledge about historical taxation practices, missing documentation, changes in accounting and financial reporting systems, or acquisitions/mergers. The Government may question the accuracy of certain refund calculations if these circumstances exist.
It is critical to demonstrate to the Government that the taxpayer’s calculations provide the most accurate and reliable depiction of historical facts and circumstances available. Here are a few helpful tips:
Navigant’s experienced tax controversy experts develop transparent and easy-to-understand accounting analyses to support the accuracy, completeness and reliability of taxpayers’ positions. Please contact us if you would like to arrange a time to discuss your needs in more detail.