(a) Examination of taxpayers records. The Tax Commissioner, or any of his or her authorized agents, is hereby 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 subject to, the provisions of this chapter, for the purpose of verifying the accuracy of any withholdings due under this chapter. Every employer, supposed employer, taxpayer or supposed taxpayer, is hereby directed and required to furnish, within ten calendar days following a written request of the Tax Commissioner, or his or her duly authorized agent or employees, the means, facilities, and opportunity for making the examinations and investigations as are hereby authorized.
(b) 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 the person, under oath, concerning any income which was or should have been returned for taxation, or withheld, or any transaction tending to affect the income, and for this purpose may compel the production of books, papers, records, and federal and state income tax returns, and the attendance of all persons before him or her, whether as parties or witnesses, whenever he or she believes the persons have knowledge of the income or information pertinent to the inquiry.
(c) Result of refusal to submit information. The refusal to produce books, papers, records and federal and state income tax returns, or the refusal to submit to the 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 § 181.99 hereof.
(d) Retention of records by taxpayer. Every taxpayer shall retain all records necessary to compute his or her tax liability for a period of six years from the date his or her return is filed or the taxes required to be withheld are paid.
(e) Confidential nature of information. Any information gained as a result of any returns, investigations, 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 tax purposes, or except in accordance with proper judicial order. Any person divulging information in violation of this section shall be fined not more than $500 and imprisoned not more than six months, 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 shall be guilty of an offense punishable by immediate dismissal.
(Ord. 2004-154, passed 12-13-2004)