Case Study

Digging Deeper For Severance Exemptions

When legislation changes on severance tax or exemptions, you need to be ready to look back at your annual filings and how they apply. Going above and beyond what is typically taken as a standard deduction by the state can result in massive severance tax refunds.

THE CHALLENGE

A West Virginia operator had paid a multi-million dollar sum in severance tax to the state, but how much of it is exempt? The state allows the standard transportation deduction, but oftentimes a dig deeper shows other opportunities. Also, West Virginia refunds are slower than most states to issue refunds.

THE APPROACH

Look at the specific process of the operator, and understand what is exempt based on the tax code. Study the changing legislation and apply it to the historical tax filings. Visit the state multiple times to build on a relationship and expedite the refund process.

THE SOLUTION

A severance tax refund of $2MM+, recovering almost 30% of all severance taxes paid. A severance tax refund check in the hands of our client within 5 months of our start date and a happy client.

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