Managing State Tax Audits (Portfolio 1730)

Bloomberg Tax Management Portfolio, Managing State Tax Audits, No. 1730, focuses on the state tax audit process and provides practical insights in planning for and managing state tax audits.

This Portfolio addresses state tax audits primarily in the context of income and sales and use tax audits. The authors describe the state audit process and provide planning opportunities that can minimize the time, expense, and exposure of a state tax audit. While addressing procedures to follow during a field audit, the ideas discussed herein also apply in responding to questions during a desk audit. It also takes a look at some emerging, nontraditional audit techniques.

The Portfolio discusses in detail the audit selection process, how an auditor prepares for an audit, and the types of preparations a taxpayer should make before an auditor walks in the door. It sets out the ground rules all parties should follow before, during, and after an audit. The Portfolio also discusses the various audit techniques used and how the different audit techniques may impact a taxpayer's net liability. In addition, the Portfolio discusses computer–assisted audit methods and how the growing reliance on computer systems is changing how audits are performed. It provides key points on managing an audit, bringing an audit to closure, and how to proceed in the case of disputed audit results.

This Portfolio may be cited as Amato, Yanover, and Simonetti, 1730 T.M., Managing State Tax Audits . Within the Multistate Tax Portfolio Series, however, references to the Portfolios will include only the Portfolio numbers and titles.