42-2302

42-2302. Managed audit agreements

A. On application by a taxpayer, the director, in the director's sole discretion,
may agree to a managed audit with the taxpayer. The managed audit agreement shall:

1. Be signed by the taxpayer and the director.

2. Contain a declaration by the taxpayer that all statements of fact in the
taxpayer's application and agreement are true and correct for every material matter.

3. Specify the types of taxes, the reporting periods, any limitations on the scope
of the managed audit, the name of the taxpayer's authorized representative, if any, and
the audit plan, including the procedures to perform the managed audit.

B. The managed audit agreement may be modified in writing if the agreement is
signed by the taxpayer and director and the agreement complies with subsection A of this
section.

C. The director may consider all relevant factors when determining whether to agree
to a managed audit agreement, including:

1. The taxpayer's history of tax compliance.

2. The amount of the taxpayer's time and quality of resources that the taxpayer can
dedicate to the audit.

3. The extent and availability of the taxpayer's records.

4. The nature and scope of any legal dispute with the department and its relevance
to the managed audit proposal.

D. A managed audit agreement for taxes under chapter 5 of this title shall include
county excise taxes. A taxpayer may request that the managed audit agreement include city
and town excise taxes and the department shall notify the cities or towns in which the
taxpayer conducts business. If a city or town does not agree to participate in the
managed audit agreement, the city or town shall not conduct an audit of the taxpayer for
forty-two months from the end of the last tax period that is covered by the managed audit
agreement unless an exception applies pursuant to section 42-2059.