Amend Section 7076.4 and repeal Section 7076.5 of the Sales and Use Tax Law to delete the January 1,

SALES AND USE TAX (2008) SUGGESTION NO. 3-7 PAGE 1 OF 3 Repeal Section 7076.5 of the Sales and Use Tax Law to delete the January 1, 2009 sunset date of the Managed Audit Program and thereby extend the program indefinitely. Source: Sales and Use Tax Department Existing Law Until January 1, 2009, the Board is authorized to utilize a Managed Audit Program (MAP) in which a taxpayer can perform an audit of their own books and records, with limited guidance from the Board, in order to determine tax deficiencies. In return for performing the managed audit, the taxpayer is liable for only one-half of the interest usually imposed under current law. Managed audits are essentially self-audits. The Board is authorized to determine which taxpayer accounts are eligible to participate in a MAP and to enter into MAP Participation Agreements with eligible taxpayers. If the taxpayer is eligible, the auditor provides the taxpayer with written and oral instructions to enable the taxpayer to perform the audit verification and prepare the working paper schedules necessary to complete a particular portion of the audit. Taxpayers who meet the following criteria are considered candidates for a managed audit: • Taxpayers whose business involves few or no statutory exemptions; • Taxpayers whose business involves a single or small number of clearly defined taxability issues; • Taxpayers who agree to participate in the MAP; and • Taxpayers who have the resources to ...