MTC Sales & Use Tax Audit Manual PUBLIC DRAFT

Sales & Use Tax Audit Manual Rev. May 2010 Multistate Tax Commission 444 North Capitol Street, N.W., Suite 425 Washington, D.C. 20001 Telephone: 202-624-8699 Website: www.mtc.gov [This page intentionally left blank] MTC Sales & Use Tax Audit Manual May 2010 PUBLIC DRAFT Page 2 of 62 Multistate Tax Commission Sales & Use Tax Audit Manual Table of Contents Chapter Title Page 1................Introduction ....................................................................4 2................[Reserved] ......................................................................5 3................Pre-Audit Procedures .....................................................6 4................Statutes of Limitation & Waivers ................................10 5................Working with Taxpayers ..............................................12 6................Nexus ...........................................................................17 7................General Audit & Verification Procedures ...................21 8................Computer Assisted Audit .............................................32 9................Sampling & Testing .....................................................42 10..............Tax Issues & Related Audit Procedures ......................45 11..............Narrative ..................................................................... ...