Louisiana Administrative Code › Title 72 - UNIFORM LOCAL SALES TAX › Part I - General Provisions › Chapter 1 - Administrative Procedures › Section I-119 - Audit Protocols for Local Sales and Use Taxes

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions. For purposes of this Section,
				the following terms have the meanings ascribed to them.
Collector
-the single collector for a parish
				  as defined in Article VII, Section 3 of the Constitution of Louisiana and the
				  collector's duly authorized representatives.
Confidential Information
-information
				  involving the reporting and payment of taxes maintained pursuant to a statute
				  or tax ordinance, excluding ad valorem property taxes and ad valorem property
				  tax assessment rolls.
Private Auditing Firm
-a private agency or
				  auditing firm contracted by a collector for the examination or investigation of
				  the place of business, if any; the tangible personal property; and the books,
				  records, papers, vouchers, accounts, and documents of any taxpayer for the
				  purposes of enforcement and collection of any tax imposed by that taxing
				  authority.
Public Information
-sources of information
				  available to the general public including, but not limited to, public records
				  of an Assessor's Office, Secretary of State, Economic Development, US Census
				  Bureau or any other governmental agency; industry publications, press releases,
				  news articles, or directories; researchable data of a commercial or nonprofit
				  entity; common knowledge about a taxpayer or industry; and personal observation
				  or experience.
Taxpayer
-any person defined in
				  R.S.
				  47:301(8) who is subject to
				  audit under
				  R.S.
				  47:337.35.
B. Audit Selection and Assignment
1. Collectors may identify possible accounts
				for audit by researching public information, confidential information contained
				in the collector's records, confidential information received from other
				collectors under written reciprocal exchange agreements in accordance with
				R.S.
				47:1508(B)(5) and
				recommendations from private auditing firms, individuals, businesses or
				organizations.
2. Private auditing
				firms that have entered into agreements with a collector under the provisions
				of
				R.S.
				47:337.26 may identify potential audits on
				behalf of that collector by researching public information and reviewing prior
				audits the private auditing firm performed on behalf of that
				collector.
3. Private audit firms
				may not identify leads for or request audit assignments from collectors based
				on confidential information disclosed by the records of a taxpayer under audit
				or previously audited for a different collector under the provision of
				R.S.
				47:337.26(C)(2)(a). However,
				nothing herein shall prohibit a collector from providing confidential
				information disclosed through an audit of the records of a taxpayer with
				another collector when the collectors have entered into a written reciprocal
				exchange agreement in accordance with
				R.S.
				47:1508(B)(5).
4. Requests for audits submitted to a
				collector by private auditing firms should include the following information:
a. the legal identity of the
				taxpayer;
b. evidence of the
				taxpayer's nexus within the jurisdiction as such is defined in
				R.S.
				47:301(4);
c. a statement of assurance that the lead was
				developed in compliance with
				R.S.
				47:1508 and
				R.S.
				47:337.26(C);
d. a description of the general nature of the
				business;
e. the reason the
				collector might want to audit this taxpayer;
f. an address where records are expected to
				be reviewed;
g. an estimated
				timeline for the review of the records provided;
h. any additional notes on known or
				anticipated special circumstances; and
i. when available:
i. the registered account number of the legal
				entity being requested;
ii. the
				dates of taxable activity to determine if a waiver of prescription is
				necessary; and
iii. any previous
				audit findings including the audit period, tax liability and issues
				discovered.
5.
				Collectors shall establish procedures to ensure that an audit is assigned to
				only one private auditing firm or staff auditor for a given audit
				period.