Q. What is a Managed Audit?
A managed audit is a variation on the traditional field audit. It’s an opportunity to come forward voluntarily and declare unreported or underreported income and pay back taxes owed without incurring penalty. In addition, interest is not assessed as long as the liability is paid in full within 180 days of assessment.
Q. Who qualifies for a managed audit?
Anyone qualifies who has not filed a tax return, or who needs to report additional tax and has not received an audit engagement letter from the Taxation and Revenue Department (TRD). You may be disqualified for a managed audit if you:
- have an outstanding balance in the tax program you are applying for;- have received more than two non-filer notices from TRD, or
- are in the process of declaring bankruptcy or under current investigation for a tax-related criminal act.
Q. What tax types are eligible for a managed audit?
Most of the state taxes and fees administered by TRD under the Tax Administration Act are eligible. These programs include, but are not limited to, personal income, gross receipts, withholding tax, liquor excise, corporate income and franchise tax, workers’ compensation fee, oil and gas production, weight distance, tobacco products, and compensating tax.If you are interested in a program and have a question about whether it is included, please click the Contact Us button.
Q. How many times can I request a managed audit?
You can request only one managed audit per tax program.
Q. How do I apply for the amnesty program?
Fill out and submit a managed audit application. Applications can be mailed or faxed, or you can come into a district office
and pick one up. You can inquire about managed audits by calling the Managed Audit Hotline phone number at (505) 841-6216. We can provide more information or you can request an application.