Project Description

Problem Statement:

A California based oil and gas exploration company had just filed for bankruptcy. Production levels and commodity prices were dropping; all while the ad valorem tax assessments were increasing.

AT Tax was Engaged to:

Review work from current tax advisors, determine the underlying basis of the assessments, develop a market based production and valuation basis and implement the plan for the appeal and reduction of the assessments.

AT Tax Advisory’s Results:

In under 30 days, AT Tax Advisory initiated appeals on all open prior year assessments and commenced valuation work and discussions with the local assessing authorities to reduce the valuations to a market basis. AT Tax Advisory generated over $5 million in tax reductions, reducing prior year’s assessments from over $500 million to $50 million.