(a) Upon receipt of any information reasonably causing the Administrator to believe that any employer or taxpayer or person either has made an incorrect or inaccurate return or has made no return but should have done so, the Administrator may, after not less than fifteen days notice in writing to the employer, taxpayer or person involved, apply to any court of competent jurisdiction for determination that there is reasonable cause to believe that such return is incorrect or inaccurate or that no return was filed but should have been. If the court determines that there is good cause to believe that such return is incorrect or inaccurate or that no return was filed, but should have been, then the court shall issue an order ordering such employer, taxpayer or person to produce for examination by the Administrator the most recently filed Federal income tax return, and such other records as the court may deem relevant, of such employer, taxpayer or person for the purpose of verifying the correctness or accuracy of such return, or, if no return was made, to ascertain the tax due under this chapter.
If the employer, taxpayer or person voluntarily produces such Federal income tax return for inspection by the Administrator within fifteen days after receipt of such written notice, however, no application to a court for an order to produce shall be made.
(b) The Administrator is hereby authorized to order any person presumed to have knowledge of the facts to appear before him and may examine such 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 Federal 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.
(c) The refusal to produce Federal income tax returns, 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 Administrator authorized hereby shall be deemed a violation of this chapter punishable as provided in Section 197.99.
(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, or except in accordance with proper judicial order. No person shall divulge such information.
(e) Every taxpayer shall retain all records necessary to compute his tax liability for a period of five years from the date his return is filed, or the withholding taxes are paid.
(f) Whenever the Administrator has probable cause to believe that a person or business is residing or conducting business within the municipal limits of the City, the Administrator may cause a questionnaire to be forwarded to the address of such person or business, inquiring into the length of time the person or business has been residing or conducting business within the municipal limits of the City, and further inquiring into any subject necessary to provide for the proper collection of income taxes. Upon receipt of the questionnaire, the person or business shall answer the questionnaire and forward the same to the City within 15 days of receipt of the questionnaire.
(Ord. 2147. Passed 11-2-71; Ord. 5271. Passed 5-5-08.)