Oklahoma Municipal League Independant Audit Program Revenue Recovery Group was recently cited in the November 2003 issue of the Official Publication of the Oklahoma Municipal League. Below is a reprint of the OML article with permission.
Affiliate member in the SpotlightRevenue Recovery Group
The name says it all – Louisiana based Revenue Recovery Group recovers lost revenues for cities and towns. The company performs audits on behalf of city and town governments to ensure sales and use tax compliance. Since 1989, Revenue Recovery Group has recouped more than $47 million for its municipal clients.
“We collect money for our clients that would otherwise be lost,” said Doug Frye, Client Relations Manager and also an auditor at Revenue Recovery Group. “We go out and do audits on companies that do business and then leave town without paying taxes.” He explained that in addition to “main street” type, brick-and-mortar businesses, contractors and out-of-state companies also make up a substantial share of trade in many cities and towns. It is these out-of-town businesses who often “do not bother to collect and remit.” Frye said that since the statute of limitations on sales and use tax collections is three years, once that time has past the money is lost forever to the municipality.
Through an agreement between Revenue Recovery Group and OML, the Independent Audit Program is now being offered to OML member cities and towns. The program has the full support of the Oklahoma Tax Commission. Where in the past, cities and towns had little control beyond requesting audits through the OTC, they will now have the ability to retain an independent audit firm to help them recover lost sales and use tax revenues. In short, the IAP offers municipalities direct input and control over matters that significantly impact their tax base.
Currently representing 327 local taxing jurisdictions, Revenue Recovery Group is the only firm in the nation coordinating sales and use tax auditing services to multiple local governments in multiple states.
“Recovering this money for our clients — that’s our main goal,” said Frye.
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