(a) The tax administrator may conduct an audit of any business operator to ensure proper compliance with the requirements of this chapter.
(b) To initiate an audit the tax administrator shall provide written notice to the business operator that is the subject of the audit of the initiation of the audit by serving the notice personally or by U.S. mail to the most recent address for the business operator in the tax administrator’s records. The notice shall state the period of time subject to the audit.
(c) Notice of the initiation of an audit for a quarter for which either a business tax filing for a new business or quarterly tax return was submitted under Section 2.37.100 or Section 2.37.110 must be served within three (3) years of the last day of the quarter to which the filing or return applied.
(d) Notice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under Section 2.37.100 or Section 2.37.110, but for which the business was registered as a business under Section 4.60.030, must be served within five (5) years of the last day of the quarter for which the filing or return should have been filed.
(e) Notice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under Section 2.37.100 or Section 2.37.110, and for which the business was not registered as a business under Section 4.60.030, must be served within seven (7) years of the last day of the quarter for which the filing or return should have been filed.
(f) Upon completion of an audit, the tax administrator may make an initial determination under subdivision (a) of Section 2.37.150 of any taxes, penalties, and interest determined to be owed and not paid for the audit period. The initial determination must be issued within ninety (90) days of the completion of the audit. If a business operator subject to audit is unable or unwilling to provide sufficient records to enable the tax administrator to verify compliance with this chapter, the tax administrator is authorized to make a reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled to a rebuttable presumption of correctness.
(Ord. 5581 § 1 (part), 2022)