Case Study: a research firm saves $3M in state taxes with Armanino LLP

Research Firm saves $3M in state taxes with Armanino

A research firm was facing a high state and local tax burden, with 90% of its taxes coming from just three jurisdictions that accounted for less than half of its sales. The firm engaged Armanino LLP and its state and local tax (SALT) experts to address this challenge and find an opportunity to reduce its tax liability.

Armanino conducted an in-depth sales factor sourcing study, analyzing four years of contracts to determine where the firm's clients were actually deriving the benefit of its services. This more accurate apportionment methodology allowed the firm to file amended returns and secure refund claims totaling $3 million, with two jurisdictions paying out in under a year. Armanino also established a new, accepted filing method for the client that will yield significant annual tax savings going forward.