Occupation Tax Audit Process

The audit is a review of your business's records and tax filings to check if you are correctly reporting your Occupation Tax.

We will review how you calculated your gross income, depreciation, miscellaneous expenses, and income amounts.  We may ask you to have other records available, including:

• your final adjusted Trial Balance
• schedules and/or supporting documentation for any deductions or production costs reported on your return, such as
  • depreciation and fixed assets
  • depletion
  • employee benefit programs
• copies of Depletion documentation
• spreadsheets used in preparing your return
• copies of federal audit reports (if you have any), also known as "revenue agent reports" or RARs

After the audit, we will send  a final report that outlines the results. This report will include details on any additional tax, penalty, and interest you may owe, or if you are entitled to a refund.

If you still need more information, please contact the tax specialist who conducted the audit.

Despite our efforts, problems occasionally arise that may not be resolved by the audit and appeal process. If you feel you have been treated unfairly, you may contact the department’s Taxpayer Rights Advocate Office. For more information, see Taxpayer Rights Advocate.