When a tax error became a $200K growth capital emergency

Italic has built its name on reimagining luxury: connecting shoppers directly with the same manufacturers behind Prada and Gucci. But in mid-2024, that vision nearly hit a wall.

After switching tax vendors, Italic's finance team discovered a nightmare: duplicate filings, 20+ missed state submissions, and nearly $200,000 in overpayments stuck in limbo. Even worse, Texas threatened to revoke their license, a move that could have halted operations in one of their largest markets.

"We were scaling fast, but cash flow was frozen," recalls COO Avi Arora. "Our tax vendor's errors had turned into a full-blown crisis."

A race against time

Italic's previous vendor offered little help: slow responses, vague timelines, and no sense of urgency. Refunds would take 6–12 months, and their only offer was "account credits." Meanwhile, penalties were mounting.

The situation had become mission-critical:

• $200K+ trapped across four states

• 20+ jurisdictions falling behind on filings

• License revocation notice from Texas looming

• Cash flow crunch threatening product launches and manufacturer payments

Avi's team needed results in weeks, not months.

Taxwire's rapid response

When Italic turned to Taxwire, the team treated it like what it was—a financial emergency. Led by tax SME Marissa Chu, Taxwire took full control within hours:

• Secured power of attorney to speak directly with state tax authorities

• Identified every overpaid and non-compliant state

• Built a compelling, evidence-backed case proving vendor error

• Engaged auditors directly—not through automated portals—to fast-track refunds

Within one week, Taxwire secured Italic's first major win: a $200K refund from New York, wired directly back to their account.

"It was surreal—$200K back in days, not months," Avi said. "That gave us breathing room to refocus on the business."

Three weeks later: full recovery

In under 21 days, Taxwire had:

• Recovered $200K+ from overpaid states

• Restored compliance across 20+ jurisdictions

• Protected Italic's Texas license from revocation

• Stopped all accumulating penalties

And perhaps most importantly—they restored confidence.

"Marissa handled every call, every audit, every refund. We didn't lose a single day of business," said Avi. "That level of speed and ownership is rare."

From chaos to control

What began as a potential shutdown became one of Italic's biggest operational turnarounds.

The experience reinforced a valuable lesson for every scaling company: automation without oversight can cost significantly, but with the right partner, control and trust can be rebuilt fast.

Today, Italic's ongoing compliance is fully automated through Taxwire, with complete visibility into every filing before it's remitted—turning what was once a liability into a point of confidence for the finance team.

$200K recovered. 3 weeks to resolution. 0 disruption.

"Building Italic requires complete focus on our mission to democratize luxury manufacturing. When our tax compliance was in chaos with nearly $200K tied up in overpayments, Marissa and the Taxwire team delivered the kind of rapid, expert resolution that let us get back to what we do best—connecting consumers with the world's finest manufacturers. Getting that $200K back from New York in under a week was exactly the kind of urgency our growing business needed." — Avi Arora