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.