Managed Audit Agreement

Proposed rule Regardless of the statutes, Comptroller`s Office has adopted a proposed rule, Rule 34 TAC section 3.282, and a managed audit plan. These documents describe, among other things, the authorization procedure, the execution of the field work by the subject, the verification of this work by the compleur, the determination of penalties and interest, the option of a conference of the Dispute Resolution Officer (DRO), the handling of the audit and administrative corrective measures. The S.B 1319 sample projection also provides for the determination of the tax adjustment in accordance with Section 151.430 using the projection based on a sample of transactions. Prior to this legislation, a subject had the right to be able to tax only for surveys paid directly to the state, and not for taxes paid to sellers. A tax payer can now use standard methods and projection methods to reimburse taxes paid to sellers and to determine tax debt or repayment in management audits. The use of a sample still needs to be subject to state approval and the issuance of the “Notification of Sampling Procedures” of the meter. The managed audit package should be made available to the legal auditor. After approval at the office level, the package is forwarded to the exam center for signature. Benefit to the taxpayer The benefit to the taxpayer of enjoying the benefits of the managed audit option is that the taxpayer controls the process and, more importantly, the closing time. A cost factor is the staff required to conduct the audit; However, many taxpayers would recognize that the investment in time for a conventional review could be just as important. In addition, managed auditing leads to the natural integration of tax payments, which are often overlooked when checking a legal auditor.

Finally, the benefit of waiving sanctions and the potential absence of interest can be considerable. Other factors that will be taken into account in deciding whether to authorize a managed audit: if the policyholder`s screening lasted more than 120 hours, a managed audit is generally considered. If no due diligence has been carried out as long as the subject can prove to the crown that a managed audit saves the state`s human resources and that the taxpayer can present a quality product in a timely manner, we will consider a managed audit. If two sequential management audits have been completed, we may consider issuing a third managed audit. However, sanctions and interest are not automatically abandoned as a result of a second consecutive management audit agreement.

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