(A) The following are hereby implemented:
(1) As used in this section and § 114.079, unless the context requires otherwise:
(a) CONCLUSION OF THE FEDERAL AUDIT means the date that the adjustments made by the Internal Revenue Service to net income or gross receipts as reported on the business entity’s federal income tax return become final and unappealable; and
(b) FINAL DETERMINATION OF THE FEDERAL AUDIT means the revenue agent’s report or other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service.
(2) As soon as practicable after each return is received, the city may examine and audit it, If the amount of tax computed by the city is greater than the amount returned by the business entity, the additional tax shall be assessed and a notice of assessment mailed to the business entity by the city within five years from the date the return was filed, except as otherwise provided in this division.
(a) In the case of a failure to file a return or of a fraudulent return the additional tax may be assessed at any time.
(b) In the case of a return where a business entity understates net profit or gross receipts, or omits an amount properly includable in net profit or gross receipts, or both, which understatement or omission or both is in excess of 25% of the amount of net profit or gross receipts stated in the return, the additional tax may be assessed at any time within six years after the return was filed.
(c) In the case of an assessment of additional tax relating directly to adjustments resulting from a final determination of a federal audit, the additional tax may be assessed before the expiration of the times provided in this division (A)(2), or six months from the date the tax district receives the final determination of the federal audit from the business entity, whichever is later.
(d) The times provided in this division may be extended by agreement between the business entity and the city. For the purposes of this division, a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day. Any extension granted for filing the return shall also be considered as extending the last day prescribed by law for filing the return.
(3) Every business entity shall submit a copy of the final determination of the federal audit within 30 days of the conclusion of the federal audit.
(4) A tax district may initiate a civil action for the collection of any additional tax due within the times prescribed in division (A)(2) above.
(B) Upon the failure of the licensee to file an audit with the Finance Officer when requested, the Finance Officer personally, or his or her agents or employees, is authorized and empowered to examine the books, papers and records of any business, employer or supposed employer, or of any license payer, or supposed license payer, in order to verify the accuracy of any return made; or, if no return was made, to ascertain the license fee imposed by this chapter. The Finance Officer may enforce this right by application to the appropriate court having jurisdiction over these matters.
(C) Every employer or supposed employer and every license payer or supposed license payer is required to furnish to the Finance Officer, or his or her duly authorized agents and employees, the means, facilities, and opportunity for such examinations, investigation and audits as are authorized in and by this chapter.
(D) The Finance Officer is further authorized to examine under oath any person concerning any income which was or should have been returned for a license fee, and to this end the Finance Officer shall have the right and power to compel the production of books, papers and records and the attendance of all persons before him or her, whether as parties or witnesses, whom he or she believes to have knowledge of such income.
(E) Refusal of any such examination by any employer or persons subject to the license fee, or presumed to be an employer or person subject to the license fee, constitutes a violation of this chapter.
(F) Agents and employees charged with the duty of inspection or auditing of records of employers and license payers shall carry proper identification, which shall be subject to examination by any person whose records are sought to be examined.
(Ord. 220.7-6-2008, passed 6-25-2008)