Delivering Major Tax Savings for a Manufacturer
The Situation
A family-owned concrete manufacturing business had been working with the same accounting firm for years. When that regional firm was acquired by a large national practice, the client relationship changed quickly. Multiple account changes followed, and with each transition, something was lost: continuity, familiarity, attention.
The company came to hfco looking for something that had gone missing: a stable, personalized accounting partner that understood their business and would be there consistently. They were referred to us by an existing client.
What we found when we looked at their prior tax returns went well beyond the instability of the relationship. There were material errors in the filings themselves, errors that had been compounding across multiple years without anyone catching them.
What We Did Together
During our onboarding review, we discovered that the previous firm had incorrectly treated PPP loan forgiveness as taxable income in both 2020 and 2021, overstating taxable income by millions in the process. We amended both the business and personal returns to correct the record.
Our review also revealed that the company had never claimed R&D tax credits for which they were clearly eligible. We facilitated multi-year credit analysis to secure the full benefit going forward.
Six members of our tax department collaborated on this engagement, each contributing specific expertise to ensure nothing else was missed. The work was thorough, coordinated, and built around getting this client to where they should have been all along.
The Outcome
The amended returns reduced taxable income by millions. The R&D credit work secured close to $1M in federal credits. Together, these results had an immediate and lasting impact on the company’s financial position.
More than the numbers, the client now has a team they can count on: one that proactively asks questions, listens thoroughly and provides sound technical guidance.
We had no idea what had been filed incorrectly until hfco reviewed our returns. They found the errors, fixed them, and recovered credits we never knew we were entitled to. The savings were significant, but what stayed with us was how thorough they were from day one.
Owner
Family-Owned Manufacturing Business, Pennsylvania
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