The Department of Revenue’s Managed Audit Program lets you play an active role in the audit of your business. Find out how this program can benefit your business.
What is a managed audit?
It is an agreement between the Department and your business that allows you to perform some, or all, of the audit functions within an established timeframe. Payment of the tax must be made at the time a Resolution Agreement is signed.
What are the benefits?
- You will gain a better understanding of how tax laws apply to your business activity.
- It will be less disruptive to your regular business operations since you'll be able to manage your own resources.
- The Department will waive up to $5,000 of audit interest and the 5 percent assessment penalty.
How does it work?
You submit a Managed Audit Application that is evaluated by the Department.Â If you qualify, the auditor will:
- Explain the procedures and timelines
- Determine the audit functions you will perform
- Give you specific written instructions
- Provide guidance throughout the course of the audit
Do I automatically qualify?
No. The decision to perform a managed audit is solely at the Department’s discretion. Careful consideration will be given to the following factors:
- Complexity of your Business
- Reporting Account History
- Accounting System & Internal Controls
- Availability of Electronic Records
- Taxpayer Time and Resources
- Cost vs. Benefit to the Department
What if I want to participate?
Complete a Managed Audit Application and you will be contacted by the Department.