About The MTC Audit Program

Sales Tax Joint Audit Process

•   MTC Audit Director assigns an audit to an MTC Auditor from audit inventory. 
•   States decide whether to participate in the audit and return signed audit authorization. 
•   Auditor contacts the taxpayer and arranges an audit appointment.
•   Auditor conducts field audit work at taxpayer’s location.
•   Auditor completes field work and supplies taxpayer with audit schedules.
•   Auditor discusses any proposed audit adjustments with taxpayer.
•   Taxpayer reviews proposed audit adjustment.
•   Taxpayer may request meeting with MTC Audit Supervisor, MTC Audit Director, or MTC  Audit Committee at any point during the audit process.
•   Audit supervisor reviews audit schedules and report.
•   Individual state audit sent to corresponding state in the audit as a recommended audit finding.
•   Each state reviews its own completed audits.
•   Each state determines action to take from audit (accept or change).
•   Each state sends out Notice of Assessment (refund) to taxpayers.
•   Taxpayers may protest the audit results directly to states or request Multistate Alternative Dispute Resolution (project developed jointly by states and COST). 
•   Computer audit specialist accompanies the auditor on first field audit trip.
•   Request electronic records from the taxpayer.
•   Convert taxpayer’s electronic records to readable files for the auditor.