The RTA is a rapid response engagement initiated after a client has received a preliminary assessment of additional taxes owed on a state or municipal audit. It is designed to quickly analyze, document, and correct residual audit errors within the negotiating time remaining and prior to the formal deficiency notice.

It takes but one experience with government auditors for a controller to appreciate the wide latitude and power enjoyed by the tax auditor to draw conclusions about tax liabilities. It is not uncommon for clients to be assessed much more than their lawful tax obligation because auditors take statistical liberties with the limited documents that they choose to sample.

"C3's comprehensive audit program will
screen the audit work papers, find the overcharges,
document the correction, cite the statutory basis
of the correction, and revise the schedules with
                   concurrence of the tax auditor".

Consortium Three’s RTAs represent a proven documented counterforce that can be used to correct government errors before they are compounded with interest and penalties and before they must be paid. C3’s comprehensive audit program will screen the audit work papers, find the overcharges, document the correction, cite the statutory basis of the correction, and revise the schedules with concurrence of the tax auditor.

In a reverse tax engagement conducted by C3, a client had been assessed over $240,000 in unpaid sales and use taxes. Interest and penalties brought the total due to well over $300,000.

"It is not uncommon for clients to be
assessed much more than their lawful tax
obligation because auditor take statistical
liberties with the limited documents that
                       they choose to sample".

Using a comprehensive plan with a tight deadline, C3 rolled up its sleeves and went to work immediately for the client. The production facility was surveyed, and equipment, product, lease, sales, payables and credit files combed meticulously to document factual errors. Vendor contact was initiated to secure necessary third party corroboration. Customer support was also obtained to secure either the necessary tax exemption documents or the unpaid taxes. Local statutes were exhaustively scoured to mitigate the state’s tax claims.

At the final audit meeting, C3 marshaled enough
evidence and statutory support to rebut all but $98,000 of the alleged underpayments. In one instance, the audit staff was completely unaware of the prevailing interpretation of its own statute which further
reduced the client liability by over $53,000.