(a) The Income Tax Director or any authorized employee is authorized to examine the books, papers, records and Federal income tax returns of any employer, or of any taxpayer or person subject to the tax for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the tax due. Every such employer, supposed employer, taxpayer or supposed taxpayer is directed and required to furnish to the Income Tax Director or his duly authorized employee, the means, facilities and opportunity for making such examination and investigations as are authorized.
The Income Tax Director or his duly authorized employee is authorized to examine any person, employer or employee under oath, concerning any income which was or should have been returned for taxation and for this purpose may compel the production of books, papers and records and the attendance of all persons before him, whether as parties or witnesses, whenever he believes such persons have knowledge of such income.
The refusal of such examination by any employer, employee or person subject or presumed to be subject to the tax shall be deemed a violation of this chapter.
Tax returns and all audit papers and information connected therewith are confidential and shall be carefully preserved so that they shall not be available for inspection by anyone other than the following listed proper agents of the City for official purposes:
(1) The City Treasurer or the Chief Deputy Treasurer;
(2) The City Auditor or his designated employees;
(3) The Income Tax Director;
(4) Employees of the Income Tax Division;
(5) Employees of the City that process Community and Economic Development grant and loan applications, the Backwater Response Initiative, and other City administered grants, loans, initiatives, and programs which require that the approved applicant is current and not otherwise delinquent in the payment of City income taxes shall have limited access to tax information. These employees shall not have access to tax returns, audit papers, or information connected therewith relating to those individuals making grant and loan applications. However, these employees shall have access to information provided by the Income Tax Division that the individual is paid in full or is current and not otherwise delinquent in the payment of any indebtedness owing to the City in relation to income taxes in accordance with Section 105.07.
(6) Members of the Board of Control or the Purchasing Director or his designee. These employees shall not have access to tax returns and audit papers; however, these employees shall have access to information provided by the City Treasurer or the Income Tax Director concerning the qualifications of a bidder for purposes of awarding a contract according to the provisions of Section 105.15, or local bidder preference as defined in Section 105.12(b).
(7) Billing and mail stream agents utilized by the Income Tax Department for periodic assessment and balance due notifications. The contract for such services shall provide the billing and mail stream agent shall abide by the provisions of this section respecting confidentiality of information privileged to the City Income Tax Department in the conduct of all services pursuant to such contract. The contract shall further provide that the agent not retain any income tax records from month to month, and shall indemnify and hold the City harmless from any improper release, disclosure or other breach of confidentiality with regard to such records.
(8) Eligible depositories under contract with the city for lockbox remittance processing of income tax returns and receipts. The contract for such services shall provide that the depository shall abide by the provisions of this section respecting confidentiality of information privileged to the City Income Tax Department in the conduct of all services pursuant to such contract. The contract shall further provide that the depository shall indemnify and hold the City harmless from any improper release, disclosure or other breach of confidentiality with regard to such records.
(9) Certain other persons or agents under contract with the City, to the extent necessary in connection with the processing, storage, transmission, and reproduction of returns and return information, the programming, maintenance, repair, testing and procurement of equipment, and the providing of other services for purposes of tax administration. The contract shall provide that the agent not retain any income tax records from month to month, and shall indemnify and hold the City harmless from any improper release, disclosure or other breach of confidentiality with regard to such records.
(b) Any information gained as a result of any returns, investigations, hearing or verification required or authorized by this chapter shall be confidential and no disclosure thereof shall be made except to municipal, county, state or federal taxing agencies, or unless ordered by a court of competent jurisdiction or unless disclosure is necessary to the conduct of a hearing before the Board of Review. Any appointed employee divulging such information in violation of this section shall be subject to dismissal. Any person divulging such information in violation of this section shall, upon conviction thereof, be deemed guilty of a first degree criminal misdemeanor and shall be subject to a fine or penalty of not more than one thousand dollars ($1,000) or imprisoned not more than six (6) months, or both. Each disclosure shall constitute a separate offense.
(c) Every taxpayer shall retain all records necessary to compute his tax liability for a period of five years from the date his return is filed, or the withholding tax is paid.
(Ord. 207-2014. Passed 10-6-14.)