Prior Audit Determinations

The 2013-15 state budget creates a new protection for taxpayers who were subject to an audit determination by the state Department of Revenue (DOR) since 2009 would not have additional tax liability in a subsequent audit if no such liability was found in the previous audit, the liability is the result of a tax issue that is the same as the issue associated with the prior audit, and DOR did not make an adjustment for the tax issue before completing the prior audit determination.

This protection would not apply if:

  • The new tax liability was the result of changes to the law, administrative rule, DOR guidance document, or a decision of the Tax Appeals Commission or court since the prior audit determination was issued;
  • The taxpayer did not provide DOR with adequate information regarding the tax issue in the prior audit determination; or
  • A tax issue settled in the prior audit determination is settled by a written agreement between the taxpayer and DOR.

This protection first applies to audit determinations issued on Jan. 1, 2014, regardless of when the prior audit determination was made.