Secure Workflows: Protecting Data in Global Outsourced Operations
18 DECEMBER 2025
Company Overview
The client is a manufacturer specializing in transmission systems, known for its engineering excellence and tailor-made, innovative solutions to a wide range of industries. With operations worldwide, the company has established itself as a global leader, delivering both products and services that are customized to client-specific needs.
Its international presence, along with multiple business verticals and technical capabilities, adds a layer of operational and regulatory complexity, especially when it comes to tax compliance and reporting in the United States. The company recently expanded its footprint in the U.S. and needed a robust tax solution to handle the intricacies of federal and state-level filings.
Return Complexity
The client’s U.S. tax compliance obligations were multifaceted and highly intricate, driven by several challenging factors:
- New U.S. Entity Setup: As a newly established entity within the U.S., the company needed to create all foundational tax documentation and frameworks from scratch, including accounting workpapers, depreciation schedules, and other regulatory support documents.
- Complex Corporate Structure: The U.S. entity was a consolidated C-Corporation with three or more subsidiaries, each requiring its own set of reporting. Additionally, the presence of foreign reporting items further increased the difficulty of preparing an accurate and compliant return.
- Large Volume of Fixed Assets: The entity maintained a significant number of fixed assets, which necessitated a detailed and methodical approach to fixed asset roll forward schedules, depreciation analysis, and classification under IRS guidelines.
- Foreign Reporting Requirements: Preparation and filing of Form 5472 was required due to the entity’s foreign ownership and international transactions, which triggered specific disclosure obligations.
- Trial Balance Complexity: The trial balance structure was intricate, involving multiple adjusting entries, retained earnings reconciliations, and mapping challenges across consolidated entities.
- GILTI Compliance: As part of its international operations, the client was also subject to GILTI (Global Intangible Low-Taxed Income) reporting, necessitating careful analysis and treatment for both federal and state tax filings. This added a significant layer of regulatory and computational complexity.
Windy Street’s Solution
The Windy Street (WS) team stepped in to provide a comprehensive end-to-end solution that addressed each of the challenges with precision, speed, and accuracy:
1. Initial Setup and Foundation Building
Since the client was new to U.S. compliance, WS built all necessary tax workpapers from the ground up, establishing a clean and organized framework that could support all current and future filings. This included custom templates aligned with GoSystem requirements and IRS expectations.
2. Tax Implication Analysis
The team performed a detailed review and analysis of newly opened general ledger accounts to determine tax implications and treatments, ensuring that nothing was overlooked. Each account was carefully evaluated for its deductibility, capitalization, or other special tax considerations.
3. Tax Elections Identification
WS helped the client identify and evaluate available tax elections, ensuring the most beneficial positions were chosen in accordance with their business structure and long-term tax strategy.
4. Fixed Asset Roll Forward Setup
Given the large volume of assets, WS studied, cleaned, and set up a complete fixed asset roll forward in accordance with IRS depreciation rules and guidelines, making the return fully compliant and ready for audit scrutiny if needed.
5. GoSystem Return Configuration
The WS team managed the GoSystem tax return setup, ensuring it was configured for both combined and separate state return filings as required by the client’s multi-entity structure. This involved coordination of apportionment data, state-specific tax treatments, and unitary filing requirements.
6. Process Execution & Deadline Management
In addition to high-level analysis and setup, the WS team actively supported the day-to-day processing of return components—including data entry, reconciliation, and review processes—to ensure that all tax returns were accurately filed on or before the IRS and state deadlines.
Client Testimonial
“Considering the fact that it was a new client and a consolidated C-Corp in GoSystems, there were a lot of things that could have gone wrong with this project. But the team did a great job keeping the project moving and delivering a very impressive work product for review.”
The client was highly satisfied with Windy Street’s performance, particularly highlighting the smooth project management, proactive communication, and the quality of the final deliverables despite the complexity and volume of work involved.
Conclusion
This case exemplifies Windy Street’s capability to manage highly complex tax compliance engagements for multinational clients with sophisticated entity structures and foreign reporting requirements. From foundational setup to technical compliance tasks, the WS team delivered a comprehensive and high-quality tax solution, helping the client avoid compliance risks, meet deadlines, and establish a repeatable framework for future filings.
