Audit of New Businesses
The City Code provides for a new business to estimate gross volume for its business license until a full calendar year of operation has been completed. Thereafter, the preceding calendar year gross volume is reported for the next license year. The City Code also provides for the Commissioner of the Revenue to adjust the tax on initial estimates based upon the true amount of such gross.
Audit of Continuing Businesses
The tax applicable to the business license is computed annually based on preceding year gross volume. The audit indicates any difference between actual and reported gross volumes for the audited period.
Basic Audit Procedures
The audit letter requests books and records reflecting business transactions for the time period indicated in the letter. Annual financial summaries are generally accepted. Such summaries may include:
- Bookkeeping records
- Federal tax returns
- General Ledgers
- Profit & Loss Statements
- Trial Balances
If more than one license is involved (either by additional classifications or locations), a breakdown must be provided. Copies of any other city or state business licenses must also be furnished.
Interest and Penalties
Information as to the time, date, and location of the audit is included in the audit letter. You may mail or fax the required information prior to the appointment date. Upon receipt of this information, we will cancel your appointment, or if necessary, request additional information. Once all information is provided, the an audit performed in our office generally takes 30 minutes or less.
Interest is assessed on audits indicating a tax due status. Additional interest will be assessed on balances not received within thirty (30) days from the audit date.
A penalty may be assessed at the rate of ten percent (10%) of any audited tax due. A copy of the audit reflecting all volume adjustments (if any) required by the code will be sent to the taxpayer.
Extensions and Appeals
A one time extension, with the exception of a summons, may be granted. You may call or write to reschedule for a specific date and time.
You may appeal a business audit after you have received the results. You must provide your basis for appeal along with supporting documentation. A copy of your appeal rights accompanies each audit and can be read on the Review of Assessment (Appeal of Audit Findings) webpage.
Please call the Audit Division with questions related to business audits.
Hours of Operation: Monday - Friday, 8 a.m. - 5 p.m.