Practice · Federal contract · Recovery

The years already filed are not closed.

Where prior treatment was wrong, the correction reaches back. Phase 3 recovers what those years overstated or left unclaimed, through the mechanisms the law provides.

Who this is for
Contractors whose earlier assessment surfaced prior-period error worth recovering
Delivered as
One report: the recovery computed, sourced, and mapped to the filing that captures it

Recovery is a computation, not a claim.

Prior-period value sits in two places: cost that was allocated incorrectly on the contract side, and deductions never taken on the tax side.

Both are recoverable, and neither is recovered by arguing. They are recovered by computing the cumulative difference correctly and filing it on the right form, with the authority for every step on the page.

What the engagement does

Quantify, source, file.

01

The prior-period population is established: which years, which assets, which cost pools, and what the correct treatment would have been.

02

The cumulative effect is computed asset by asset rather than estimated, with sign and spread treatment determined.

03

Where the correction is a change in method of accounting, it is captured as a §481(a) adjustment on Form 3115, typically under the automatic consent procedures.

04

Contract-side cost allocation corrections are identified and reconciled against the tax correction, so the two readings land together.

05

Every figure carries the authority it rests on, because a recovery that cannot be defended is not a recovery.

Two ways to engage

You choose the delivery tier.

Tier 1 — Study and Report

FactorTax delivers the analysis and the filing-ready documentation, built to withstand examination. Your tax provider implements it.

Tier 2 — Study and Implementation

FactorTax delivers the study and implements it end to end, preparing and filing the accounting-method change and signing as practitioner of record under Treasury Circular 230.

Every engagement is a single flat fee, fixed in the engagement letter before work begins. No ranges, no hourly billing, and no fee that moves with the size of the result.

Let’s go!

One register. Two regulators. No remainder.

Start with a scoped Diagnostic, or go straight to FAR Phase 1. Either way, we read the contract side first.