The Department of Revenue (DOR) routinely audits businesses to determine whether state excise taxes were reported and paid correctly. Audits are a learning opportunity for correct excise tax reporting.
An auditor will contact you to schedule an appointment. A date and time will then be agreed upon.
The audit may take place at the following locations:
We are committed to working with you in a professional and cooperative manner.
The audit relates to excise taxes you may pay on your excise tax returns, such as:
An audit of your business activities may cover several major areas, including:
The auditor will explain the records required for the review. Gather these before your meeting.
The audit period is usually for the past four calendar years, plus the current year through the end of the last completed calendar quarter.
The records requested usually include the following:
Although most audits can be completed with the above records, additional documents may be requested.
The auditor will use your electronic records, when available. This improves the accuracy of the audit and reduces the time it takes to complete, minimizing the inconvenience to you.
Sampling is frequently used to realize efficiencies for both the Department and taxpayer. This helps minimize costs associated with the audit, such as retrieving and examining documents.
The auditor will discuss the options to select the most appropriate method.
All information you provide will be maintained in strict confidence and is not available to the public. However, the Department has information-sharing agreements with the Internal Revenue Service and other state agencies.
The auditor will take a tour and/or observe your operations to get a better understanding of your business activities and accounting records.
The auditor will review those records and provide you with valuable information and instructions for future use.
You will be notified of the audit findings. The auditor will explain any adjustment to you or your representative before finalizing the audit. If you have information we have not considered or you believe a mistake has been made, please contact the auditor promptly.
You have the option to prepay your assessment once the audit has been completed. Full payment will include the tax, any applicable penalties, and estimated interest. Since a full payment stops the accrual of interest, you would save money by making the payment early. Any questions you have about making a prepayment should be discussed with the auditor.
You may request a meeting with the auditor's manager and review disputed issues.
Note: This is general information. If you need more information about the audit process, please contact your local office.
Audit process brochure (pdf)