Reverse Income Tax Audit
Reverse Income Tax Audit
As states revamp already complicated tax codes to collect more revenue, your business could overlook tax-savings opportunities. State auditors likely won’t inform you of favorable adjustments, but our professionals can help determine if you overpaid or are at risk of noncompliance for underpayment.
Conducting a reverse income tax audit (RITA) — the process of thoroughly understanding your business operations and reviewing your recent state income tax returns — could uncover offsets, reduce tax assessments, and potentially provide significant refunds.
Presenting RITA filings to state and local authorities with our guidance can save considerable time and money — providing cash and resources to reinvest into your business.
Uncover your reverse audit opportunities
Revisiting your income tax returns can provide benefits for previous and upcoming business years.
Future sustainability
Uncover more efficient tax filing methods to create seamless processes moving forward, saving time — and often money — for future tax years.
Strategic apportionment
Effectively allocate profits by state through a detailed evaluation of your business operations, determining how income could be taxed based on your operation locations.
Special deductions
Identify special deductions, elections, and state adjustments that may apply to your industry or location of your business operations.
Claim credits and incentives
Find overlooked tax credits and incentives such as rewards for your business’ innovative research and development initiatives, operating in specific locations, and more.
Companies in a state of transition often benefit most from reverse audits, especially if your business has:
- Multistate or international sales
- Growing operations and customer base
- Diversified or new business activities
- Recent merger, disposition, or other large transaction
- Concerns over increasing state income or franchise tax liabilities
How the process works
- Assess filing methods: Determine if your current methods are the most effective option.
- Adjust filing approach: Apply new, enhanced methods to future tax filings.
- Seek refunds: Amend prior filings to resolve inconsistencies or request refunds.
Additional reviews are rarely required once filing concerns are resolved unless your business undergoes substantial operational changes.