Offered tax provision services to a growing life science company
Offered tax provision services to a growing life science company
We offered tax provision services to a growing life science company. The company had been in operations for a decade and was looking to improve reporting functions for audits in hopes of going public, and the company engaged our accounting and tax teams to assist. During our first year in taking over the tax provision, we reviewed past tax returns and tax provisions and found a number of prior errors in return reporting where millions in tax deductions were potentially missing from prior returns.
In partnership with the company and its tax preparers, we were able to review information from the prior three years and identified missteps in transfer pricing and fixed asset reconciliation issues between the company and tax ledgers. Through our endeavors, we identified over $5 million in additional net operating losses for which the company could benefit.
Ultimately, the tax preparers were able to amend the prior returns in order to get the benefit of the net operating losses, which could lead to future tax cash savings of over $1.5 million.
Note: This work was performed prior to joining Stout.