If you pay business taxes to the Department of Finance, you may receive one or more notices from our Audit Division. They are listed below. You should make sure to read the notices carefully and respond as instructed on the notice. Please mail any responses to the address shown on the notice.
We may send you an Information Document Request while your return is under review. The Information Document Request will also list the initial audit issues as well as phone numbers for the auditor, supervisor, and manager assigned to your case.
You must respond by the deadline on the Information Document Request. It is important to send complete records for the period under review. An audit will continue with or without the additional information and a determination will be made based on available information.
We may send you a Notice of Proposed Tax Adjustment when the audit results in an additional tax due. The notice lists the tax due plus any interest and penalties.
If you agree with the stated amount, the balance due must be paid within 30 days of the date on the notice unless other payment arrangements are made. If you disagree, send a reply stating your position with supporting documentation within 30 days of the notice date, or request an exit conference.
If there is a payment error, send proof of payment with your reply. If you made payment by bank check, send a copy of the front and back of the cancelled check. If payment was made by money order, obtain and send a copy of the cancelled money order from the place where it was purchased.
We will send with the audit workpapers a Workpaper Cover Letter that explains how to accept or disagree with the audit findings.
If you accept the audit findings, inform the auditor, and a Consent to Audit Adjustments will be sent to you.
If you disagree, send a reply stating your position with supporting documentation within 30 days of the letter date, or request an exit conference.
The Department of Finance will send the Consent to Audit Adjustment(s) with the Notice of Proposed Tax Adjustments, or when you accept the audit findings mailed to you with the workpaper cover. The Consent to Audit Adjustment(s) lists the tax due plus any interest and penalties. You will also receive a Payment Transmittal Form with instructions for making your payment.
A Consent and Waiver is sent to you when the audit has been settled. The Consent and Waiver lists the tax due plus any interest and penalties. You will also receive a Payment Transmittal Form with instructions for making your payment.
DOF issues a Consent Determination at the conclusion of the audit in confirmation of the Consent to Audit Adjustment(s) or Consent and Waiver. A Consent Determination lists the tax due plus interest and penalties.
A Notice of Determination is issued at the conclusion of the audit if you do not agree to the audit findings or if you did not respond to the Information Document Request(s) or Notice of Proposed Tax Adjustment. A Notice of Determination lists the tax due plus interest and penalties. In these cases the amount of tax will be based on all available information, including federal tax returns and the past records of the Department of Finance.
You or your representative have 90 days from the date stated on the Notice of Determination (or 150 days if the notice is addressed outside the US) to decide which of the following options to choose:
If you fail to respond to a Notice of Determination within the required period, DOF will issue a Notice and Demand for Payment, which marks the beginning of collection procedures.
The Department of Finance sends this notice at the end of an examination of your tax return if no adjustments were necessary.
The Department of Finance sends this notice after a refund request has been examined and all or part of the refund is denied. The notice explains the reasons for this decision.