Frequently Asked Questions
Listed below are answers to frequently asked questions about our services. Click on the plus sign to expand the category.
Does my company qualify for some or all of the benefits you list?
Most likely only some will be applicable. For instance, Property Tax Mitigation and Cost Segregation only apply to commercial property owners.
Are there other factors?
Yes, there are also minimums. For example, your business may process credit cards, but not meet the necessary volume threshold for us to renegotiate your merchant fees.
The requirements for each focus area is spelled out in the sections below.
How long does the preliminary assessment take?
The initial Review can be done in less than a half-hour. It is simply plugging numbers into our App to see if there is adequate monetary gain to proceed.
And if there is?
Then a discovery call with an Account Manager will be scheduled, where greater details will be discussed and you will be given a list of necessary documentation to be provided.
How much is the upfront cost?
There is no upfront cost. Our work is all done on a contingency basis, where we only get paid based on the amount you receive.
Once I do the Review am I obligated to follow through?
The initial Review has no obligation. Once you decide to move forward, then a Letter Of Authorization (LOA) must be signed and a Client will be expected to perform the tasks needed to obtain whatever benefit is being applied for.
How long have you been in business?
We have been assisting companies like yours for almost two decades.
What is Cost Segregation?
Cost Segregation is an “engineering-based” study which allows a building owner to depreciate a new or existing structure in the shortest time permissible under current tax laws. Using accelerated methods, certain costs that were previously classified as subject to a 39-year depreciable life, can instead be classified as personal property or land improvements, expediting the rate of depreciation to 5, 7, or 15-years.
What are the primary benefits?
The primary benefits include:
* Immediate increase in cash flow.
* Reduction of current tax liability.
* Deferral of taxes.
* Ability to reclaim “missed” depreciation deductions from prior years.
* No requirement to file an amended tax return.
How do I know if I qualify?
The qualifications are as follows:
* Commercial buildings purchased, constructed, expanded or renovated in the past 20 years.
* Cost of over $500,000.
* Property taxes in excess of $50,000.
What are the average tax savings?
$75,000 per $1,000,000 of property cost.
How long does it take?
The normal turnaround for a Cost Segregation Study is 4 – 6 weeks.
Is this a “gray” area that will raise red flags with the IRS?
Directly from the IRS Cost Segregation Audit Techniques Guide – Chapter 2 – Legal Framework:
“Buildings and structural components have substantially longer depreciable lives than personal property. Therefore, it is desirable for taxpayers to maximize personal property costs in order to accelerate depreciation deductions and, hence, reduce tax liability.”
Shouldn’t my Accountant/CPA know about this?
We work with CPAs and Accountants all across the USA. Very few truly understand the benefits of Cost Segregation and many tax preparers actually advise commercial property owners not to commission such a study, usually due to high upfront costs.
However, since we do not charge any upfront fee, this primary objection has been eliminated.
Property Tax Mitigation
How does this work?
Our experienced team of professionals are experts in property assessments, valuation and mitigation. They will work on your case to identify any potential opportunity for refunds and/or reductions in your current property taxes.
What are the benefits of a Property Tax Mitigation Study?
The immediate benefit is the reduction of taxes owed and the potential of refunds on prior taxes paid. The future benefits would similarly be a reduced tax burden going forward, producing an increased cash flow for the business.
What are the potential savings?
On average, we have found property owners are being charged at least 15% more than they should be.
Who qualifies for a Property Tax Review?
Any commercial property owner who pays over $50,000 per year in real or personal property tax.
How long does the process take?
It can take anywhere from 1 – 12 months. The turnaround is dependent upon the local municipality. Each municipality has an annual review date. On that date, our Property Tax Division submits their findings on your behalf. The municipality then reviews the findings and rules either in your favor, or not. Most often the findings favor the property owner.
What if my local municipality has a question or objection?
We perform all the work on your behalf until savings are captured, including partaking in hearings and filing necessary paperwork. We act as an extension of your company toward the governing property tax bodies.
Workers Compensation Audit
What are the benefits of a Workers’ Compensation Audit?
We identify and recover workers’ compensation premium overcharges, as our experience indicates that over 70% of all companies have been or are currently being overcharged on their premiums.
What does this entail?
We review the past five to seven years of classifications, experience rating calculations and premium audit calculations.
What are the minimum requirements?
Industries that have an average workers’ compensation premium of $50,000 or above qualify for an audit. Companies that have operations in more than one state increase the opportunity to recover a refund substantially.
R & D Credits
What are R & D Credits?
They are specialized incentives for companies who manufacture or develop products in the U.S.
How did they come about?
The R&D Tax Credit was originally introduced in the Economic Recovery Tax Act of 1981 and was enacted to provide economic incentives for companies conducting R & D in the United States.
Designed to stimulate research and development in industries of all types and sizes, many business owners are unaware that these R & D Tax Credits exist at both the Federal and State level.
So these are legitimate tax credits?
Yes. Utilizing a team of highly qualified professionals, including IP attorneys with engineering backgrounds, we perform an in-depth analysis to determine which ones may apply to your company. We strictly adhere to the Comprehensive Project-by- Project Approach methodology, as required by the IRS.
Does my company need to have a research facility?
Not at all. These benefits are not just available to billion dollar corporations with research labs and many companies are surprised to find out that they qualify.
Who is eligible for these credits?
Companies performing qualified activities with a total U.S. payroll of over $500,000.
What are “qualified activities”?
Any company that designs, develops or improves products, processes, techniques, formulas, inventions, or software may be eligible.
* New Product & Process Development
* Developing New Concepts Or Technologies
* Design (Layout, Schematics, Autocad)
* Prototyping or Modeling
* Testing / Quality Assurance (ISA900x, UL, Sigma Six, etc.)
* Integration Of New Machinery (CNC, SLA, SLE, etc.) Into An Existing Process
* Software Development Or Improvement
* Automating Or Streamlining Internal Processes
* Developing Tools, Molds, Dies
* Developing Or Applying For Patents
What are the benefits?
These are the direct benefits:
* Dollar for dollar credit against taxes owed or previously paid.
* Carry forward credit for future profitable years.
* Immediate increase in company cash flow.
How much in tax savings is available?
The average in tax savings is $20,000 – $40,000 per year for every $1,000,000 in total company payroll. In addition, companies may be eligible to claim credits for 3 prior tax years, plus the current year.
Merchant Account Audit
Why would I need a Merchant Account Audit?
The payment industry is very complex and merchants are faced with an array of numerous payment gateways and card processing options.
On top of that are confusing statements, hundreds of various payment processing fees – including costly layers of discount rates, transaction fees and surcharges.
What are the benefits of a Merchant Account Audit?
Our Credit Card Audit focuses solely on expense reduction within the payments industry. Without an unbiased review, a merchant can easily fall into the trap of accepting unfair pricing and paying large fees to accept credit card payments.
Our expertise and experience coupled with our thorough expense reduction process ensure the most competitive plan type and rate.
How do you do this?
We review your 2 most recent merchant processing statements in order to calculate the Baseline Processing Rate, which is used to measure future savings.
Our team then works with you to further reduce the non-negotiable fees through processing optimization, where we can help qualify payment transactions at lower interchange rates, by passing through additional processing data.
How much can be saved?
On average, we can reduce processing fees by 21%.
What are the minimum requirements?
Your business must do in excess of $300,000 in card payment volume per year. Companies processing card payments greater than $1,000,000 on an annual basis typically have the largest potential savings.
What if my company takes only phone or online orders?
We have seen the highest success rates for B2B customers and eCommerce merchants that process credit card transactions where the card is not physically present.
What if we just swipe cards via a terminal at our place of business?
Not an issue, as long as the annual volume requirement is met.
How long does the process take?
After receipt of all required documentation, we begin securing lower fees directly with the merchant services provider. On average this takes between 30 to 60 days.
What are Hiring Incentives?
These fall under the Work Opportunity Tax Credit (WOTC), which is a Federal income tax credit provided to private sector employers who hire and retain veterans and individuals from other target groups facing significant barriers to employment.
What types of employees qualify?
The following individuals qualify under WOTC:
* Unemployed Veterans (including disabled Vets)
* Food Stamp (SNAP) Recipients
* Qualified Long-Term Unemployment Recipients (hired after 01/01/16)
* Temporary Assistance for Needy Families (TANF) Recipients
* Designated Community Residents (living in Empowerment Zones or Rural Renewal Counties)
* Vocational Rehabilitation Referred Individuals
* Supplemental Security Income Recipients
* Summer Youth Employees (living in Empowerment Zones)
How are the tax credits calculated?
Employers generally can earn a tax credit equal to 25% or 40% of a new employee’s first-year wages, up to the maximum depending on the target group.
Employers will earn 25% if the employee works at least 120 hours and 40% if the employee works at least 400 hours.
How much are these credits worth?
Employers can receive between $2400 to $9600 per employee, depending on which target group they belong to.
What are Energy Credits?
In 2005, the Energy Policy Act was passed. It was designed to promote conservation and encourage the use of alternative energy sources, including solar and wind.
Contained in the EPA were special provisions designed to reduce the initial investment in energy efficient buildings via accelerated tax deductions. This includes full and partial deductions for such things as heating, cooling, lighting, hot water and ventilation.
How much can be saved?
Up to $.60 for lighting, $.60 for HVAC and $.60 for building envelope, creating a potential combined deduction of $1.80 per sq/ft.
Why would my company need this?
Our Waste Audit saves Clients needless costs in waste disposal billing by analyzing services and producing the most cost effective solutions.
We have found that 80% of businesses utilizing a commercial waste service provider can save money with a Waste Audit.
How much savings?
The average savings per company ranges from $3000 to $15,000 annually.
How does this work?
Our Waste Audit service lowers your monthly expenses for solid waste, medical waste and recyclables by finding billing errors and overcharges. In addition, we evaluate your agreements, equipment, current service levels and pricing to uncover other cost reduction opportunities.
Is there a minimum requirement?
Any company spending in excess of $500.00 per month in waste and/or recycling fees can benefit from our Waste Audit.
Who would benefit the most from a Waste Audit?
The list below has been shown to derive the largest benefits:
* Retail Shopping Centers
* Office Buildings
* Hotels & Motels
* Educational Facilities
* Demolition Companies
* Food Distribution Facilities
* Healthcare Facilities
* Apartment Buildings
* Grocery Stores
* Construction Firms
What are the qualifications?
Any company that ships packages within the continental U.S.
What are the benefits of a Shipping Audit?
Through our Shipping Audit service, you can expect to see up to 3% hard-dollar savings in the form of carrier refunds. An additional 7% savings can be realized through the use of our reporting tools and cost saving optimization analytics.
Do I have to change carriers?
No, nothing changes about the way you ship packages.
What is the cost?
We bill clients monthly based solely on a percentage of the refunds the client receives. The agreement terms for this service are month-to-month.