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Frequently Asked Questions

Tax Services > Frequently Asked Questions

(1) What types of industries have you helped recover state & local tax refunds?

National Tax Recovery, LLC personnel have recovered tax overpayments for hundreds of national and Fortune 500 companies including "Top Ten" hotel chains, manufacturers, restaurants, retail operations, and rental companies.

(2) What is your fee for your services?

 In most cases, National Tax Recovery, LLC collects a fee on a contingency basis only. No compensation is due National Tax Recovery, LLC unless and until credits, refunds, interest, or savings are realized by your company. Outside of the percentage-based contingency fee, NATIONAL TAX RECOVERY, LLC does not and will not seek any additional compensation, such as set-up fees in conducting the refund audit.

(3) How does your firm get a refund or credit for state and local tax paid in error?

If you paid state & local tax in error, National Tax Recovery, LLC may obtain a refund for you in one of several ways. We can ask the vendor for a refund, claim a credit on your own state & local tax return, or request a refund from the state’s Department of Revenue Department.

(4) How far back do you recover tax refunds?

Typically, National Tax Recovery, LLC can recover tax overpayments from vendors and the state going back four years per statute of limitations. However, some taxing jurisdictions allow us to collect further back, and vendors, on occasion, have credited back tax overcharges incurred since inception of the error. As a rule, National Tax Recovery, LLC makes claim for recovery going back to the inception date on all issues.

(5) What about future savings?

National Tax Recovery, LLC does not bill any client for future savings.

(6) If my company, for reasons private to itself, elects not to pursue any of the identified issues, what fees or other commitments will my company be subject to?

If your company elects not to pursue any of the identified tax errors/credits/claims, your company will not be subject to compensating National Tax Recovery, LLC for those non-elected claims, nor will any other commitment be sought by National Tax Recovery, LLC for the non-elected claims. Again, National Tax Recovery is compensated only for realized credits, refunds, interest or savings, and National Tax Recovery, LLC Recovery will not pursue certain issues if advised not to.

(7) What is a Report of Findings?

National Tax Recovery, LLC provides each client with a report of findings after reviewing your accounts payable invoices, returns and some misc. revenue accounts. The report will list a short description of each tax error/issue uncovered. Each issue may include supporting tax/legal citations as well as a calculation of tax overpayments. The report that is provided to the client is the same report that will be provided to the state and/or vendors.

(8) Will your services provide us with the necessary tools to monitor state & local taxes in the future?

National Tax Recovery, LLC will provide a copy of the report of findings, a copy of the tax/legal citations that each client will need to make tax decisions in the future and answer as many questions concerning our review as we can. We will also provide each client with a customized state & local tax manual that will provide guidelines to your tax department and operating personnel to insure compliance in the future. The manual will have emphasis on the identification and documentation of taxable transactions, exemptions and deductions.

(9) What would our company's involvement be?

Your time investment during our review process should be minimal. It is obtain by our personnel executing 95% of the work. Your company's involvement during the four phases of refund review can be roughly estimated as follows:

(a) Planning Meeting:…………. 1-2 hours

(b) Issue Identification: ……….. None

(c) Record Review: …….……… None

(d) Petition Preparation: ……….. None

(e) Presentation to Client: .……...1-2 hours

(f) Attendance at conferences:… None

(g) Receipt of Refund: …………. None

(h) Sales Tax Seminar: ………… 1-2 hours

(10) What information do you need from us?

A power of attorney; Copies of your state & local tax returns with backup information; A chart of accounts; Access to your accounts payable invoices over the prior three to four years; A copy of all real property maintenance contracts over the prior three to four years; and A detail asset listing of all capital purchases made in the last three to four years.

(11) What is the time frame for a state & local tax refund review?

 Upon receipt or access to needed resources, National Tax Recovery, LLC will have 30 days or less to prepare a report of findings to you.

1 - 30 days:

National Tax Recovery, LLC reviews information and compiles a preliminary list of issues.

National Tax Recovery, LLC performs research.

National Tax Recovery, LLC prepares a preliminary report of findings.

Client and National Tax Recovery, LLC discuss findings.

National Tax Recovery, LLC present final report to client.

30- 35 days:

National Tax Recovery, LLC files claim to state and/or vendors.

35+ days:

National Tax Recovery, LLC works with vendors & state to resolve tax errors and secure refunds.