Case Study: Contractor / Manufacturer

Audit Assessment: $167,902.76
Marsu Reduction: $136,551.6 2- 81%
Marsu Approved Refund: $17,335.29
Interest / Penalty Savings: $44,927.38

Real property contractor/installer of countertops & cabinetry was being audited by the Compliance Division for failure to collect tax on the sale of countertops & cabinetry and to pay use tax on materials used in real property construction. Original assessment was $167,902.76. Marsu reviewed workpapers & obtained resale and exemption certificates. Marsu documented alternative projection methodology for sales that was approved. Final assessment was $43,174.85 with an approved offset credit/refund of $17,335.29 for net tax due of $25,839.56. Taxpayer filed for the tax amnesty program and ultimately paid no penalty and half of the interest due. Marsu Tax can provide sales tax audit assistance in Maryland for all types of contractors and manufacturers.

Case Study: Manufacturer

Audit Assessment: $15,131.00
Marsu Reduction: $8,904.01 – 59%
Marsu Approved Refund: $32,163.34

A manufacturer was being audited again by the Compliance Division. This was their third audit in the past twenty years. Taxpayer was being assessed for failure to collect sales tax and pay use tax on expenses and assets. Marsu assisted taxpayer in proving their manufacturing and research and development exemption for asset items included in the audit. The asset assessment was originally $8,953.31 and the final amount was only $49.30. The final assessment amount was $6,226.99 and Marsu documented an offset credit/refund in the amount of $32,163.34.

Case Study: Government Contractor / Manufacturer

Audit Assessment: $7,999,277.28
Marsu Reduction: $7,627,269.05 – 95%
Marsu Approved Refund: $424,834.03
Penalty/Interest Savings: $150,000.00

Government contractor/manufacturer was originally assessed for $7,999,277.28. Marsu assisted taxpayer in proving that it qualified as a manufacturer and that it was selling tangible personal property to the federal government. Assessment was reduced to $372,008.23 and an offset credit of $424,834.03 was approved and applied to the assessment. Taxpayer saved approximately $150,000.00 in interest and penalty by having Marsu perform a reverse audit.

Case Study: Printer & Mailhouse

Audit Assessment: $25,145.41
Marsu Reduction: $13,156.02 – 52%
Marsu Approved Refund: $45,248.22

A small printer/mailhouse was being audited by the Compliance Division and assessed for $25,145.41 in tax. Marsu reviewed the workpapers and provided documentation to the auditor in the field and to the hearing officer. Assessment was ultimately reduced to $11,989.39. Marsu documented an offset credit/refund in the amount of $45,248.22 and the taxpayer received a refund of $33,258.83. Taxpayer also saved $10,661.65 in interest and penalty by having Marsu perform a reverse audit.

Electrical Contractor Tax Refund

Closed Audit Assessment: $11,835.94
MARSU Reduction: $5,152.14 – 43.5%
MARSU Approved Refund: $49,501.47

A small electrical contractor had been previously audited and assessed for $11,835.94. MARSU appealed the assessment and got the assessment reduced under Section 13-509 of the Annotated Code of Maryland. Taxpayer received a refund of $5,152.14, which was a 43.5% reduction. MARSU performed a reverse audit and secured a refund of $49,501.47.

Audit Letter