42-6005. Unified audit committee; joint audits

A. The director shall establish a unified audit committee with cities and towns. The committee shall coordinate uniform audit functions. The committee shall publish uniform guidelines that interpret the model city tax code and that apply to all cities and towns that have adopted the model city tax code.

B. If the department intends to conduct an audit of a taxpayer, the department shall notify the cities or towns in which the taxpayer conducts business. A city or town may accept the audit as a joint audit and may elect to have a representative participate in the audit provided that no more than two city or town representatives in total may participate. If a city or town does not accept the audit as a joint audit, the city or town may not conduct an audit of the taxpayer for forty-two months from the close of the last tax period covered by the audit unless an exception applies to that taxpayer pursuant to section 42-2059. An audit conducted by a city or town serves as a joint audit for all cities and towns that have taxing jurisdiction.

C. A taxpayer that conducts business in more than one jurisdiction may allow a joint audit for all taxing jurisdictions. A taxpayer that does not allow a joint audit for all taxing jurisdictions is subject to an audit by another jurisdiction at any time. If a joint audit is performed by a city or town, this section shall not be construed to prohibit the department from conducting any audit that does not violate the provisions of section 42-2059.

D. When the state statutes and model city tax code are the same and where the department has issued written guidance, the department's interpretation is binding on cities and towns.

42-6005. Unified audit committee; joint audits

A. The director shall establish a unified audit committee with cities and towns. The committee shall coordinate uniform audit functions. The committee shall publish uniform guidelines that interpret the model city tax code and that apply to all cities and towns that have adopted the model city tax code.

B. If the department intends to conduct an audit of a taxpayer, the department shall notify the cities or towns in which the taxpayer conducts business. A city or town may accept the audit as a joint audit and may elect to have a representative participate in the audit provided that no more than two city or town representatives in total may participate. If a city or town does not accept the audit as a joint audit, the city or town may not conduct an audit of the taxpayer for forty-two months from the close of the last tax period covered by the audit unless an exception applies to that taxpayer pursuant to section 42-2059. An audit conducted by a city or town serves as a joint audit for all cities and towns that have taxing jurisdiction.

C. A taxpayer that conducts business in more than one jurisdiction may allow a joint audit for all taxing jurisdictions. A taxpayer that does not allow a joint audit for all taxing jurisdictions is subject to an audit by another jurisdiction at any time. If a joint audit is performed by a city or town, this section shall not be construed to prohibit the department from conducting any audit that does not violate the provisions of section 42-2059.

D. When the state statutes and model city tax code are the same and where the department has issued written guidance, the department's interpretation is binding on cities and towns.