Such an audit is usually completed quickly via information letters between the Department and the taxpayer. Typically an auditor will send the taxpayer a notice requesting additional information about an item, or items on their return, or to notify the taxpayer of an error that needs to be corrected. The auditor’s notice will:
- State the nature of the problem and an and explanation of any possible changes in the taxpayer’s tax situation;
- Ask the taxpayer to provide additional information or an explanation as to why the taxpayer disagrees with the proposed changes;
- Provide the taxpayer the date by which a response is due; and
- Give the taxpayer the name and telephone number of the DOR employee that is handling the audit.
It is important to respond to all notices sent by the Department to you, as failure to do so may result in being responsible for any additional tax, interest and penalties found due.