How is working with Tax Advisors Group different from the way my company has worked with tax consultants in the past?
Nothing has to change regarding the way you currently track your assets and inventory. Simply email us your cost information and we will upload and manage your data through our custom software. It’s that simple: each year simply send us your asset additions and deletions and updated inventory information.
What is the advantage of using Tax Advisors Group versus doing it myself?
TAG is the only BPP tax consulting firm that uses a 3rd party independent appraiser as standard procedure for every client. And all service is included in one performance-based fee as a percentage of the tax savings you realize. Bill Blankenship is a leader in the industry, developing the market value strategy over 20 years.
Why can’t my CPA firm file market value renditions?
The process of your CPA auditing both your financial records and market valuation of your assets, as defined by the Texas Property Tax Code, would create a conflict of interest. Therefore an independent source, specializing in only fair market value appraisal, avoids any conflict of interest.
Why don’t all tax consulting firms file market value?
The majority of tax consulting firms file compliance. Compliance filing is simply cost-based filing per the standard depreciation schedules and categories listed on the Taxing Entities Rendition forms. This is a mass production method, usually billed as a flat fee per location or per rendition filing. Firms that periodically file market value renditions often do not have the experience to consider various unpredictable aspects when applying market value principles per the Texas Tax Code, nor do they have the time for in-depth analysis on the majority of their clients since they are focusing mainly on their largest clients.
I receive so many phone calls from consultants. What is the difference between you and the other consulting firms?
Six areas of expertise set us apart: Tax Advisors Group’s custom in-depth analysis of your business practices and your assets and inventory; focus and experience on BPP, not primarily Real Estate with a sideline business of BPP; independent 3rd party appraiser with who focuses exclusively on BPP and inventory valuation; proactive approach in solving property values before the value notice; and the synergy of the above, combined with our knowledge and experience over a 20- year period.
If I can file market value, why would I have Tax Advisors Group file it for me?
Tax Advisors Group has historical experience of the fluctuating market conditions and an understanding of the unique issues associated with specific industries. We also have an independent 3rd party appraiser who updates our information annually. These factors and other resources result in greater market value reductions. You must also have a baseline for your market value opinion in the event the appraisal district would request further information, per the Texas Property Tax Code. Why incur the cost of an independent fee appraisal each year to risk not achieving a reduction in your taxable value.
I’ve used tax consulting firms before. I didn’t see a big difference on our tax savings.
The majority of consulting firms file compliance, which is simply filling out the rendition forms per the standard depreciation schedules and categories listed on the form. They may also obtain some tax reduction by performing general housekeeping on your asset classifications, such as reclassifying assets in more suitable classifications or eliminating non-operating or idle assets. Even firms claiming they file market value renditions do not have the specialized and knowledgeable personnel or reliable 3rd party appraisal data to file effective market value returns.
Why should I pay your fee based on a contingency?
We would like to prove our cost effectiveness to you. Many clients prefer a contingency-based (performance based) fee for the first years of our agreement. The fee is based on a portion of your realized tax savings, but the majority of the savings is passed on to you. Once our clients are established, they sometimes choose to be billed on a flat fee basis.
Once you have succeeded in valuing my assets on a market value basis, will the basis be carried forward by the tax assessor?
The tax assessor requires you to submit your current asset listing and inventory each year on the assessment date. Even if you filed the exact same assets and inventory each year, we consider whether changes in your industry and the economy have altered the market value of your property. Market value filings are open to negotiation each year by the assessor and may be affected by issues within the taxing entity; for example, the pressure for increased tax revenue. As long as you continue to file market value, as defined by the Texas Property Tax Code and substantiated by the independent 3rd party appraiser data, you will continue to benefit by increased tax savings. Reverting back to cost basis filings will once again substantially increase your tax liability.