Third-party tax audit and collection firm reform legislation goes into effect Jan. 1.
Reminder: NFIB/AL Offers a Tax Audit Survival Handbook
There are a still a few months
before Senate Bill 335 goes into effect, and NFIB/AL has gotten increased
complaints from members about third-party audit and collection firms being
aggressive. Here’s what you need to know.
SB 335 will update the Alabama
Taxpayers’ Bill of Rights and Uniform Revenue Procedures Act to prevent audit
and collection firms from mistreating businesses and to prevent businesses from
being overburdened by the auditing process. It goes into effect Jan. 1.
In the meantime, the voluntary
NFIB/AL Tax Advisory Committee—made up of seven certified public accountants
and three tax lawyers—has worked for months to put together a thorough list of
guidelines to help small business owners manage a federal, state, or local tax
audit.
These guidelines cover:
- Why a business may be selected for
an audit - Red flag items that can trigger
audit selection - What to do upon first contact from
an auditor—as well as specific tips when audited by the State Department of
Revenue or a third-party audit and collection firm - How to deal with an aggressive
auditor - Steps that will be taken following
an audit - The specifics of the new law
reforming third-party audit and collection practices
CLICK
HERE for Guidelines to Managing a Federal, State, or Local Tax Audit.
