(a) The Administrator or any authorized employee is hereby authorized to examine the books, papers, records and federal income tax returns of any employer or of any taxpayer or person subject to, or whom the Administrator 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 due under this Chapter. Every such employer, supposed employer, taxpayer or supposed taxpayer, is hereby directed and required to furnish, upon written request by the Administrator or his or her duly authorized agent or employee, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.
(b) The Administrator may order any person to appear at the office of the Department of Income Taxation and may examine any person, under oath, concerning any income which was or should have been returned for taxation or any transaction tending to affect such income, and for this purpose may compel the production of books, papers, records and federal income tax returns and the attendance of all persons before him or her, whether as parties or witnesses, whenever he or she believes such persons have knowledge of such income or information pertinent to such inquiry.
(c) The refusal to produce books, papers, records and federal income tax returns, 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 Chapter or with an order or subpoena of the Administrator authorized hereby, shall be deemed a violation of this Chapter, punishable as provided in Section 181.99.
(d) Any information gained as the result of any returns, investigations, hearings or verifications required or authorized by this Chapter shall be confidential, except for official purposes, for disclosure and exchange of information with other federal, state or local taxing authorities for tax collection purposes, or except in accordance with proper judicial order. Any person divulging such information in violation of this Chapter shall be subject to the penalty provided in Section 181.99. Each such disclosure shall constitute a separate offense.
(e) Wherever the Administrator issues a decision regarding an income tax obligation that is subject to appeal, the Administrator shall notify the taxpayer at the same time of the taxpayer’s right to appeal the decision and the manner in which the taxpayer may appeal the decision.
(Ord. 147(04-05). Passed 2-17-05.)