LEASE AUDITING CASE STUDY 7

Getting the Benefit of Tax Reduction Brings to Tenant $78,000

Client
A Fortune 100 utility provider that occupied 57,000 square feet in Chicago, IL

Audit Discovery
The landlord had successfully appealed the real estate taxes and charged our client with the cost for legal review and contest. Since the tax reduction was obtained three years after the actual tax bills were paid, the landlord never passed through to our client the credit that was received by the taxing authorities as a result of the appeal.

Resolution
MBG Consulting reviewed several years of tax statements and discovered that landlord's actual books and records included several large credits. Upon further research, these credits were traced back to tax refunds that were never passed through to our client.

Lessons

• Always request copies of tax bills and research appeals and their results with the tax authorities.