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.
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