CS/HB 495 - Certified Audit Program Summary

• Increases interest abatement incentives for taxpayers participating in the certified audit program, raising the abatement from $15,000 to $25,000 for those who request participation after a notice of audit intent has been issued, with the percentage abated also increasing from 15% to 25% on amounts exceeding the threshold.

• Authorizes the Department of Revenue to initiate a certified audit program for sales and use taxes under chapter 212 and local option taxes under sections 125.0104 and 125.0108.

• Permits taxpayers to participate in the certified audit program even after the department has issued a written notice of intent to conduct an audit, with a 30-day deadline to request participation after such notice.

• Requires qualified practitioners (certified public accountants) conducting certified audits to submit proposed audit plans within 30 days for pre-notice taxpayers or 60 days for post-notice taxpayers, with completed reports due within 285 days for post-notice audits.

• Authorizes the Department of Revenue to adopt rules prohibiting qualified practitioners from representing taxpayers in informal conference procedures when the practitioner conducts a certified audit after an audit notice has been issued.

• Effective date: July 1, 2013.