Taxpayer Assistance - Audit of Return or Document and Assessments

The Department audits only a portion of the returns or documents filed each year.  If your return is selected for audit, it does not mean that you have done something wrong.  Many audits close without change.  In other cases, the examination may show that you have overpaid your tax.  If you are due a refund, one will be sent to you without further request.  However, if you have any outstanding tax liability, the Department will apply the refund to such liability.

There are several ways an audit may be handled.  For example, the examination of your records may be by correspondence, or by review at the Department's office.  In other instances, your records may be audited at your residence, place of business, or your representative's place of business.

If the Department finds that additional tax, penalties or interest are due after the audit, an assessment in the form of a Notice of Assessment may be issued.  Sometimes an assessment may be made without an audit.  In these cases, a demand for payment will be issued.  Under the Taxpayer Bill of Rights, you have the right to an explanation of the reasons for any change to your tax liability or the reasons for any penalties assessed.