Cost Remediation Assessment Summaries

A Partial Listing of the 27 Tax and Cost Remediation Assessments and Studies available, all performed on a contingency basis with no cost or risk or interruption to your business:

Cost Segregation Study
A tax planning strategy that accelerates depreciation deductions and defers tax payments on commercial property. A team of tax professionals, structural design experts and engineers identify and re-classify commercial building component expenses. The result generates a Cost Segregation Study that identifies and maximizes a clients tax benefits. Why wait 39 years to fully realize the benefit of depreciation deductions when we can accelerate those benefits down to as little as 5 – 7 years. The resulting benefit is superior cash flow, re-investable assets into the business and or time value of money benefits for the business/business owner. 90% of commercial properties qualify for this service.

“Cost Segregation studies should be performed by qualified individuals or firms such as those employing personnel competent in design, construction, auditing and estimating procedures relating to building construction.” – U.S. Internal Revenue Service

“Cost Segregation Studies are a lucrative tax strategy that should be considered in almost every real estate purchase.” – U.S. Treasury Department

R & D Tax Credit Assessment
The R&D Tax Credit is a federal program listed under Section 41 of the IRC and is designed for companies performing manufacturing in the U.S. This is an engineering-based program that focuses on a company’s operations and processes in order to determine their qualification for incentives. Qualified activities include, but are not limited to: Develop, design or fabricate products; Develop new or improved processes; Perform prototyping or modeling; Develop new software applications; Perform testing or quality assurance; Automate internal processes; Perform any engineering functions; Develop or apply for patents; Develop new concepts or technologies; Experiment to eliminate uncertainty; Develop biotechnology processes.

The R&D Tax Credit provides an avenue to receive “tax money” back from prior years while also reducing current taxable income on a dollar-for-dollar basis. See R&D Tax Credit Overview here.

“Although it has a well-deserved reputation for complexity and uncertainty for taxpayers, the research tax credit of IRC 41 nonetheless remains a valuable source of support to businesses.” – Journal of Accountancy

Merchant Account Audit
The Merchant Account Audit protects businesses against paying higher fees and helps reduce the fees and charges they already pay. With over 300 possible charges, merchant statements are rife with errors due to inefficiencies and outdated categorizations that unnecessarily cost businesses millions. The Merchant Audit uses industry insider knowledge and proprietary software to decode merchant statements to ensure the business is receiving the most accurate interchange categorizations, optimized discounts and routing options to minimize costs to the business

Energy Comprehensive Study
There exist two opportunities under this study and service. The first is a review of all local, state, and federal programs available to assist in Energy reduction efforts. The second is an actual study of the physical structures, wherein our engineers and contractors can engage in structural changes resulting in vastly reduced energy expenses for which a bonded guarantee is available relative to forecasted savings being achieved. Nationally, energy expenses are rising annually at 11%, participants in our study will realize a savings of between 25% – 45% on average.

Hiring Incentives
As a result of the multitude of stimulus packages offered through various governmental agencies there exists substantial opportunities for employers to realize financial benefit through qualification for hiring incentive tax credits. We review every applicable stimulus package through studies that are performed to determine the eligibility of current and future employees in order to assess potential tax credit. This is accomplished through live screening interviews, offering assistance identifying target hiring categories, and providing internal compliance guidelines to ensure future new hires are properly screened. Our business owner clients will benefit up to $9,000 per year, per employee in tax credits.

Property Tax Review
Outside of income taxes, the single largest recurring charge for commercial property owners are property taxes. With this audit, we engage in a review of real and personal property tax assessments which often results in the identification of opportunities for lower property tax bills. The immediate benefit is the reduction of taxes owed and the potential of refunds on prior taxes paid. The average savings realized by our clients relative to their property tax is 15% – 20%.

Workers Compensation Audit
Many times the employee classification relative to workers compensation insurance is incomplete or simply wrong. Many employees, based on their various daily functions may or should carry different or multiple classifications, but don’t. These errors cost American employers millions of dollars annually. Through our study we evaluate issued workers compensation insurance policies and the work product of those involved in creating and issuing such policies. By comparing the policy content to the source documentation used to determine the policy premium, the premium audit review process determines the correct amount of premium that each policy holder is, or should have been, required to pay. Contingent upon our findings, the business owner may be entitled to refunds of over expenditures for up to the last 7 years of premiums. An additional realized benefit, will be annual savings going forward as a result of the corrections being made. In excess of 70% of all businesses are being over charged.

Freight and Parcel Audit
With the vastness and volume of today’s shipping enterprise, there exists enormous opportunity for billing errors to occur. With this system, we review and audit a company’s overall freight/parcel costs via primary carriers; FedEx and UPS. Through the audit we have a 90% success rate in identifying client savings that are based on those over charges from the shipping carriers. In addition, client reports are provided detailing the errors.

Vendor Screening
Business owners carry an incredible amount of liability relative to the vendors they elect to engage. This liability stems from both a Federal Law (Patriot Act) and from a legal liability standpoint (sub contractors/vendors). Our process relieves companies from the burden of management, maintenance and screening of new and existing vendors as well as getting them compliant with all legal guidelines. We support due diligence and require vendors to provide current documentation to prove they are legitimate. In addition, our screening tracks General Liability and Worker’s Compensation insurance certificates of vendors.

Cell Phone Audit
Through this audit we reduce the client’s wireless bills for 24 months via a third party review. The review will look at errors, overages, and other fees to optimize the client’s account. The focus is to save money within the same carrier and not to change to a different carrier. We are successful 90% of the time in saving our clients 25% of their gross communication costs.

Property Lease Audit
With this audit, we help commercial tenants recover rent expense overpayments and prevent ongoing operating expense overcharges that are based on inaccurate billing methodologies or impermissible lease charges. All leases are auditable, we are highly effective in identifying issues and recapturing those monies.

Equipment Lease Audit
There exist incredible opportunity for even minute errors in billing to develop into massive over expenditures with the volume of usage relative to leased equipment. We will not only identify those errors and recapture those expenses for you, but will also, as a result of our findings, provide savings on future use of the leased equipment. All lease are auditable, the larger the expense and the longer the equipment has been leased the more you will want us to review it.

Energy Deregulation
The reverse auction energy program works much the same way as e-Bay, except instead of bidding the price up, the goal is to bid the price down. An energy deal is presented for auction based on the customers specified terms. Suppliers then bid directly against each other electronically during a pre-specified bidding period for the right to service that deal. The lowest priced bidder wins, thus ensuring that the customer gets the best possible deal for saving on their energy cost while expending the least amount of time and effort on their part.

 

To Your Prosperity!

Scott Scholz & Associates  .  425-829-4110 .  scott@scottscholz.com