Savings of $100,000+ From Identification of Omitted Disposals

Home Furnishing Retailer

A large retail client in home furnishings had a practice of refreshing the locations every 5 years. The client’s accounting group had not been tracking the disposals as fixtures were replaced. Making accurate reporting more difficult was the practice of bundling fixture costs with other store-related equipment into lump-sum totals. We visited several locations and developed a strategy to segregate the disposed fixture costs. We were successful in detailing this adjustment with jurisdictions across 23 states. The resulting annual tax savings exceeded $100,000.