(a) Examination of Taxpayers Records. The Tax Commissioner, or any of his authorized agents, is authorized to examine the books, papers, records and federal income tax returns of any employer, or taxpayer, or any person subject to, or whom the Tax Commissioner believes is subject to, the provisions of this chapter, for the purpose of verifying the accuracy of any return made, or if no return was made, to ascertain the tax or withholdings due under this chapter. Every such employer, supposed employer, taxpayer or supposed taxpayer is hereby directed and required to furnish, upon written request of the Tax Commissioner, or his duly authorized agent or employees, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.
(b) Investigative Questionnaires. The Tax Commissioner may require any taxpayer, or any person whom the Commissioner may reasonably presume to be required to file a return or pay a tax, to complete and return a questionnaire from which the Commissioner may determine whether such person shall be required to file a return or pay a tax. In said questionnaire the Commissioner may demand information concerning residency, income, sources of income, and any other information that bears upon the question of taxability.
(c) Appearance Orders to Taxpayers. The Tax Commissioner is hereby authorized to order any person, presumed to have knowledge of the facts, to appear at the office of the Tax Commissioner and to examine such person, under oath, concerning any income which was or should have been returned for taxation, or withheld, or any transaction tending to affect such income, and for this purpose may compel the production of books, papers, records and federal, state, county and municipal income tax returns, and the attendance of all persons before him, whether as parties or witnesses, whenever he believes such persons have knowledge of such income or information pertinent to such inquiry.
(d) Result of Refusal to Submit Information. The refusal to produce books, papers, records and federal income tax returns, or to complete a taxpayer questionnaire, or the refusal to submit to such examination by any employer or person subject, or presumed to be subject, to the tax or by any officer, agent or employee of a person subject to the tax or required to withhold tax, or the failure of any person to comply with the provisions of this section or with an order or subpoena of the Tax Commissioner authorized hereby, shall be deemed a violation of this chapter punishable as provided in Section 151.12
hereof.
(e) Retention of Records by Taxpayer. Every taxpayer shall retain all records necessary to compute his tax liability for a period of six (6) years from the date his return is filed or the taxes required to be withheld are paid.
(f) Confidential Nature of Information. Any information gained as a result of any returns, investigations, questionnaires, hearings or verifications 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, except for official purposes as the Village Solicitor shall determine, or except in accordance with proper judicial order. Any person divulging such information in violation of this section shall be fined not more than one thousand dollars ($1,000) and imprisoned not more than one hundred eighty days, or both, for each offense. Each disclosure shall constitute a separate offense. In addition to the above penalty, any employee of the municipality who violates the provisions of this section relative to the disclosure of confidential information may be subject to disciplinary action including immediate termination.
(Ord. 2005-2. Passed 3-28-05.)