Many times, we are able to utilize our unique knowledge of the oil and gas industry and look at an operator’s invoices to determine what is taxable and what is not. Often what we see, is there is an opportunity to review invoices and find sales tax overpayment.
Sales Tax Refunds
The sales tax code can vary by state with unique exemptions in each, but in this instance an operator had engaged us to provide a review of all of their invoices. During our review, we had a batch of invoices that looked like rental of personal property (which is taxable), but we needed to dig deeper to understand the use of the property in question.
A tax savings of over $250,000 for our client due to understanding the oilfield activities that were going on and our willingness to keep digging.