Excise tax audits.

ORIGINAL
Senate
File No
.
SF0027

ENROLLED ACT NO. 23,

SENATE

SIXTY-FOURTH
LEGISLATURE OF THE STATE OF WYOMING
2018 Budget Session

AN ACT relating to excise taxes; specifying audit procedures to assess credits and deficiencies against excise taxpayers and vendors; providing that an audit tolls the statute of limitations during the pendency of the audit; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.

W.S. 39
‑
15
‑
108(a)
and 39
‑
16
‑
108(a) are
amended to read:

39
‑
15
‑
108
.

Enforcement.

(a)

Audits.
Except as otherwise provided, there are no specific applicable provisions for audits for this article.

To assess
credits and deficiencies against taxpayers and vendors, t
he department is authorized to rely on final audit findings made by the department of audit, taxpayer information, vendor information or department review subject to the following conditions:

(i)

Audits
shall
commence when the taxpayer or vendor receives written notice of the engagement of the audit. The issuance of the written notice
of the audit
shall toll the statute of limitations provided in W.S. 39
‑
15
‑
110 for the audit peri
od specified in this subsection
. The audit shall be completed by the department of audit with final findings issued to the taxpayer or vendor within one (1) year of the date of the notice of engagement. This time limit may be extended only upon mutual agreement between the taxpayer or vendor and the department
;

(ii)

After receiving noti
ce
of an audit under this subsection, the
taxpayer or
vendor shall preserve all
records and books necessary to determine the amount of tax due for the ti
me period that is being audited;

(iii)

Except as otherwise provided in this paragraph, a
udits shall encompass a time period not to exceed three (3) years immediately preceding the reporting period when the audit is engage
d. The three (3) year limit
shall not apply to
an audit
if:

(A)

There is evidence of a violation of
paragraph
(c)(iv) or
subsection
(f)
of this section
by
the
taxpayer or vendo
r for the
reporting period
being audited
; or

(B)

There is evidence of gross negligence by the taxpayer or vendor in repor
ting or remitting taxes for the
reporting period
being audited
.

(iv)

If a taxpayer is not willing or able to produce adequate records to demonstrate taxes due, the department or the department of audit may project taxes based on the best information available. If a vendor is not willing or able to comply with the record requirements of
paragraph
(c)(xi)
of this section
, the department or the department of audit may project taxes based on
the best information available;

(v)

Audits under this subsection are subject to the authority and procedures provided in W.S. 9
‑
2
‑
2003.

39
‑
16
‑
108
.

Enforcement
.

(a)

Audits.
The following shall apply
To assess credits and deficiencies against taxpayers and vendors, the department is authorized to rely on final audit findings
made by the department of audit, taxpayer information, vendor information or department review subject to the following conditions
:

(i)

If
Audits shall commence when the taxpayer or vendor receives written notice of the engagement of the audit. The issuance of the written notice of the audit shall toll the statute of limitations provided in W.S. 39
‑
16
‑
110 for the audit period specified in this subsection. The audit shall be completed by

the department
believes any return and the taxes paid are incorrect it shall recompute the return and the tax based upon the best information available.
of audit with final findings issued to the taxpayer or vendor within one (1) year of the date of the notice of engagement. This time limit may be extended only upon mutual agreement between the taxpayer or vendor and the department;

(ii)

After receiving notice of an audit under this subsection, the taxpayer or vendor shall preserve all records and books necessary to determine the amount of tax due for the time period that is being audited;

(iii)

Except as otherwise provided in this paragraph, audits shall encompass a time period not to exceed three (3) years immediately preceding the reporting period when the audit is engaged. The three (3) year limit shall not apply to an audit if:

(A)

There is evidence of a violation of paragraph (c)(iv) of this section by the taxpayer or vendor for the reporting period being audited; or

(B)

There is evidence of gross negligence by the taxpayer or vendor in reporting or remitting taxes for the reporting period being audited.

(iv)

If a taxpayer is not willing or able to produce adequate records to demonstrate taxes due, the department or the department of audit may project taxes based on the best information available. If a vendor is not willing or able to comply with the record requirements of W.S
.
39
‑
15
‑
108(c)(xi), the department or the department of audit may project taxes based on the best information available;

(v)

Audits under this subsection are subject to the authority and procedures provided in W.S. 9
‑
2
‑
2003.

Section 2
.

This act is effective July 1, 201
8
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the
Senate
.

Chief Clerk

1