Case Studies

Problem: The IRS was going after accumulated earnings tax where the tax and penalties would accumulate to $5 million.

Solution: We had been serving this client for years and as part of our service, we ensured they had a valid reason each year for the accumulated earnings and documented this in the corporate minutes every year. 

Result: We presented date stamped evidence of the corporate minutes to the IRS and saved our client $5 million dollars.

Client Quote: “Palermo, Landsman & Ross expertly managed our IRS issue, saving our C-Corporation $5 million through expert preparation and documentation.”

Problem: The client got audited by the Florida Department of Revenue for Sales Tax and had an initial amount assessed of $486,000. 

Solution: We appealed the case and argued the statute of limitations applied and a court case occurring 10 years prior which we used for that result.

Result: We prevailed and got the Department of Revenue to reduce the client bill to $0 dollars.

Client Quote: “PLR successfully navigated our sales tax audit with the Florida Department of Revenue, leveraging their expert knowledge of tax laws and precedent to reduce our initially assessed $486,000 bill to zero. Their strategic approach and diligent advocacy during the appeal process were instrumental in protecting our financial resources.”

Problem: Client was facing $1.1 million dollars in taxes on $3 million in taxable income. 

Solution: We advised a client to consider a cost segregation study on a building they had worth $18 million which generated a tax deduction of about 3.5 million dollars 

Result: We reduced their $1 million dollar tax bill to ZERO that year.

Client Quote: “The PLR Team gave me fantastic guidance by recommending a cost segregation study on our property, which not only offset our entire tax liability through a significant tax deduction. Their strategic advice turned a scary financial year into a major win for our business.”

Problem: Navigating complex US investment and tax law.

Solution: We established ITIN for the client. We then held several planning teleconferences and virtual meetings before, during and after the purchase of real estate to ensure legal compliance. We then connected this client with other US-based professional services such as a business attorney and financial advisor to ensure appropriate corporate set up and insurance for estate tax implications. We counseled the client on the US tax system and filing requirements for foreign nationals. We further educated the client on classifying income and deductions to reduce tax implications and unique tax saving’s opportunities i.e. cost segregation to reduce tax implications.

Result: The client’s investment went smoothly. He remained legally compliant throughout the process. His taxes were properly handled and his status protected.

Problem: Client was non-compliant in FBAR for income tax filing requirements for several years and was subject to severe penalties and fines.

Solution: Represented the client via Kovel to assist the taxpayer in establishing compliance in all FBAR requirements via collaboration with their tax attorney; Informed the client of future filing requirements;

Result: Successfully Navigated several countries of income and foreign account ownership and signature authority.

Client Quote: “You guys expertly held my hand through the minefield of U.S. investment and tax laws. Your compliance strategies saved our money and company.”

Problem: Client has income, trusts, pension, and real estate in several foreign countries. The client’s tax return filings involve multiple communications with several foreign accountants and collaboration throughout the year.

Solution: We handled various IRS foreign filing forms required based on income, trusts, pension, and real estate in several foreign countries. We also advised on the sale of inherited property, with other beneficiaries, in a foreign country.

Result: The client was able to come out with compliance and best-case-scenario tax filings for minimum tax in the US and various countries. He stayed compliant and managed his tax requirements for optimal long term strategy.

Client Quote: “PLR expertly managed our complex international tax scenario. Your handling of our IRS foreign filing forms and strategic advice moved us into compliance and optimized our tax filings, minimizing our tax liabilities globally.”

Problem: The client came to us with delinquent FBAR filings. After reviewing the client’s income tax returns and scope of work, we discovered the foreign tax credit was not prepared accurately on their tax return, and they overpaid in taxes about $30k per year.

Solution: We amended three years returns, due to limited statute, and correctly reported earnings and the foreign tax credit.

Result: Our work resulted in about $100k in refunds, including interest. Future filings and collaboration with foreign accounting maximized tax savings for the taxpayer among the two countries with filing requirements.

Client Quote:  “PLR expertly fixed our international filings and inaccurately completed foreign tax credits, finding significant overpayments. You guys got us over $100k! You’re amazing!”

Problem: The client had a very high tax bill based on their corporate structure.

Solution: We connected the client with a business attorney to advise on a change in entity classification for substantial tax savings.

Result: The client was able to save 15.3% converting to an S-Corporation.  Once converted to an S-Corporation was able to further save with a super-funded retirement plan via their compensation. Further, we recommended a cost segregation study on several properties which resulted in $703k in tax savings for a single year.

Problem: Client sold stock options which originated in a different state than where they currently reside. Multi-state tax implications created complicated tax liabilities. 

Solution: We filed proper allocation and reference to the origination of the earnings in accordance with each appropriate state law keeping the client complaint while maximizing tax savings.

Result: We were able to reduce their tax liability by hundreds of thousands at the state level.

Client Quote: “The folks at Palermo, Landsman & Ross helped me through a complex tax scenario for my stock option sale. They understood the various state laws and significantly reduced our tax liability, saving us hundreds of thousands of dollars.”

Problem: Client wanted more personalized tax planning. They had experienced inheritance of IRA from deceased parents and the selling of inherited property.

Solution: We advised them on how to proceed with the inherited IRA, and prepare for the taxation. Further, we properly reported the sale of the property to minimize taxes. We prepared for the client a simple checklist and review of their returns to see what documents they might be missing or deductions/savings they are unaware of.

Result: They learned about tax credits & deductions through proper planning they would qualify for reducing their tax liability by tens of thousands of dollars.

Client Quote:  “We inherited an IRA and property. PLR helped us handle our sale, ensuring all aspects were handled with an eye for tax efficiency. They reduced our tax liability by tens of thousands of dollars. Thank you!”