Offered tax provision services to a life science company

Offered tax provision services to a life science company

Greg and team offered tax provision services to a company in the Life Sciences industry. A rapidly growing company was looking to improve its reporting functions in hopes of going public and engaged the tax team to assist in preparing a PCAOB-compliant tax provision and the related footnote disclosures. During our first year in taking over the tax provision, we reviewed past federal and state income tax returns whereby we noted issues with state returns previously filed, such as net operating losses not properly being carried forward, nexus exposure, and missed R&D credit opportunities.

Through conversations with the company and our analysis of the company’s historical and current financial statements, we were able to identify missed opportunities to claim R&D credits as well as ensure that the accumulated federal and state net operating loss amount was properly reflected in the financial statements.

After follow-up discussions, the company worked with their tax preparers to apply for and qualify for R&D credits in states where they had presence. Additionally, we corrected their accumulated net operating loss carryforward amounts in their financial statements. The tax return preparers were then able to file amended state returns and request refunds for prior overpayment of tax.

Note: This work was performed prior to joining Stout.