1. Correcting Overpayments

Errors in severance tax calculations are common due to complex tax codes, frequent regulatory changes, or inaccurate production data. Over time, these mistakes can result in significant overpayments. Recovery services audit past filings to spot discrepancies and help reclaim funds that would otherwise be lost.

2. Maximizing Cash Flow

Reclaiming overpaid taxes puts money back into a company’s hands, improving cash flow. This recovered capital can be reinvested in operations, exploration, or other growth initiatives.

3. Ensuring Compliance with Current Regulations

Tax laws and regulations change regularly. Recovery services ensure that previous filings align with the most current tax rules, reducing the risk of non-compliance and potential penalties.

4. Leveraging Tax Exemptions and Credits

Many companies miss out on tax exemptions, deductions, or credits simply because they’re unaware of them or fail to apply them correctly. Recovery services identify these missed opportunities and adjust filings accordingly to maximize savings.

5. Reducing Audit Risks

A thorough review of past tax filings ensures accuracy and completeness, reducing the likelihood of triggering audits from tax authorities. If an audit does occur, having corrected filings can protect the company from fines or legal complications.

6. Improving Future Tax Processes

By identifying where mistakes occurred in the past, companies can streamline and improve their future tax reporting processes, minimizing the risk of future overpayments.

Severance tax recovery is about protecting a company’s financial interests by ensuring they only pay what’s legally required—no more, no less.