Robert D. Shannon, CPA, PC is a boutique firm specializing in providing tax and accounting services to startups (particularly high-tech startups), small, closely held firms, and Class 2 and Class 3 railways. I provide services to these small railways through a sister company, Cold Water Transportation, LLC.
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I have known Bob since 1989. He and I worked together closely on a series of tax appeals and audits, particularly during the 1989-93 period. During this time Bob, working either with me or my partners, negotiated with senior Department of Revenue personnel in ten states to limit back filing to 4 years from potentially 20 years – to obtain favorable apportionment factors and non-business income treatment for interest income and sales of assets in several states. In several cases we were able, under the current laws then in place, to successfully disclaim nexus, saving over $3,000,000 a year. In the years that I have known Bob I have been impressed by his strong work ethic, ability to research complex issues and arrive at solid conclusions. He has been a pleasure to work with.
During my tenure at Oxford Automotive, a Tier I global auto stamper with operations in the US and 15 other countries, Bob was tax manager and a direct report to me. He was a team player and worked well with his colleagues. He established a lean tax dept.; obtained tax savings of $46+ million setting up the Mercedes Benz underbody stamping facility; established Federal tax compliance and tax development requirements; and saved $2+ million in property taxes his first year without resort to litigation. He set up a tax calendar that let me know the status of tax audits (and the filing status of returns). He promptly followed up on tax law developments, and got the amended returns filed, generating some $7 million in tax refunds.
Credits and exemptions are the most valuable products because they reduce taxes dollar for dollar. Deductions are useful and give a Federal tax benefit of 21 cents on the dollar. Similarly, exemptions from sales/use taxes or property taxes can be very useful in managing the tax expense. It’s important to realize that income taxes at …
Cost Segregation, under the current tax law, is irrelevant and the time has passed for a normal cost segregation study. However, the reality in tax is that things change constantly, both through Congressional action and tax litigation. So it is well to keep this method in mind for when the changes come and cost segregation …
Often, taxpayers need to lobby for better tax treatment under the current tax codes (e.g. the Federal, state and local tax codes). Lobbying has a bad reputation because of abuses. On the other hand, there is no way to get a better tax treatment than to go before the representatives and senators at the Federal …
