Multistate Audit Technique Manual

CALIFORNIA FRANCHISE TAX BOARD Internal Procedures Manual Page 1 of 4Multistate Audit Technique Manual _______________________________________________________________________________ 0100 INTRODUCTION This Multistate Audit Technique Manual (MATM) is designed to aid auditors in the performance of multistate audits. It is intended both as a tool to familiarize auditors with multistate issues and audit techniques, and as a quick reference for more experienced auditors. The MATM contains discussions of the laws, cases and department policies affecting multistate taxpayers, as well as audit steps and techniques for examining multistate taxpayers. As explained in FTB Notice 1994-8, manuals provided for the guidance of the audit staff are not authoritative, and may neither be cited to support an audit position nor relied upon by a taxpayer. In addition, the MATM should never be considered to be a substitute for researching the laws and court or SBE decisions pertinent to an audit issue. Instead, the manual should be used as an initial step in understanding the issues. Proper use of the manual should provide direction for subsequent research, and will cut down on the time that would otherwise be needed. The auditing methods and techniques suggested in this manual are intended primarily for guidance, and may not be necessary or applicable for every audit. Auditors should use discretion in deciding which techniques should be used in a particular ...