Reduction of Significant U.S. Tax Liability Saves Foreign Company from Closure

Client:

Aviation Logistics Company

Challenge:

The company was being audited by IRS but had lost most documentation in a tsunami. Based in Japan, the company had a severely limited ability to communicate regularly with individuals in the U.S., due not only to the time difference and cultural and language barriers, but also their communication security policies allowing only for very tight windows of internet access.

The dependence on communication through delayed messages and the loss of the company’s documents contributed to an atmosphere of frustration for the client and the IRS agents, which Fineman West would have to navigate.

Strategy:

When the client’s original CPA was unable to figure out a solution to satisfy the IRS, he knew to come straight to us. Fineman West uses decades of experience in tax preparation and controversy to identify creative ways to solve clients’ problems. While our team was brought in with little preparation and no records to use in the case, we decided to look elsewhere for support. We sought out the published financial statements of comparable aviation logistics companies and prepared an analysis of their profit margins, which was used to persuade the IRS that the client’s own profit margin was likely much lower than what was first assumed.

Result:

We were successful in reducing the client’s million-dollar-plus tax liability by over 90 percent, and saving the already distressed company from closure. The company continues to use Fineman West’s services to this day.

Ready to transform your business? Contact us today at (213) 688-9898 or info@fwllp.com.