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RadiusPoint Recovers Over $1 Million for a Fortune 100 ManufacturingClient

(July 03, 2007)-- RadiusPoint announces the recovery of $1,087,000.00 for a Fortune 100 Manufacturing client. This recovery is in the form of a refund check and not a reduction to their invoices. The recovery stemmed from the repeal of the Federal Excise Tax that was deemed invalid May 2006.

The tax, which was first created in 1898 to help finance the Spanish- American War, most recently was charged at a rate equal to 3% of the total spent on LD, cellular and local calls. The tax law states that all toll charges are based on time and distance. Several years have passed since toll charges have been billed as both time and distance sensitive. In recent years, the charge has been based on the number or fraction of minutes used by the consumer.

OfficeMax among other large organizations filed a suit against the IRS regarding the collection of the excise tax, citing that their tax was not being levied against time and distance sensitive toll charges. This type of toll charge was assessed as time sensitive only and that the distance was no longer a factor. This change in the billing practices of the long distance carriers invalidated the 3% tax. After several years of battling, the IRS conceded and agreed to credit back the taxes billed for the past forty-one (41) months for all consumers.

Many organizations looked at this as a major win since the removal of the Excise tax against the toll charges would mean an instant three percent (3%) savings on future invoices. The potential of a recovery of the past forty-one (41) months was much more daunting since the invoices had to be reviewed manually to extract the necessary data to provide to the IRS for the refund. The IRS gave the capability for organizations to do a simple calculation on two (2) months of data for the refund; however doing this drastically reduced the amount of recovery for some organizations.

This Fortune 100 client of RadiusPoint sought the advice of the staff that handled these recoveries and after several calculations it was determined that this client would recover more with the itemized approach rather than with the simple calculation. RadiusPoint provided the research to gather the necessary data and documents to submit to the IRS to obtain the $1,087,000.00 in recoveries. The necessary data was readily available in the ExpenseLogic software system that RadiusPoint uses on a monthly basis to manage this client’s invoices and expenses. RadiusPoint performed this work on a project or hourly basis to allow the client to retain as much of their recovery as possible.

RadiusPoint provides a broad portfolio of business and technology expense management solutions to help its clients worldwide improve their business performance. Core services consist of Business Process Outsourcing (BPO), Software as a Service (SaaS) and License Software with respect to Telecom, Utility, Energy and IT invoice and expenses. RadiusPoint’ uses ISO 9001:2000 standards to provide services and meets government regulated standards (Sarbanes Oxley) through SAS 70 certification. RadiusPoint’s corporate headquarters is based in Memphis, Tennessee with a service office in the World Trade Center in downtown Rotterdam and an expansion office opening in Istanbul, Turkey.

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