Tax professionals frequently asked questions (FAQ)
What is the Statute of Limitations?
Five years from the filing date for Earnings Tax and three years for all other taxes.
Why was my return selected for an audit?
Audits are randomly selected. The Revenue Division accepts most City returns as filed. Some returns, however, are examined or audited to determine if income, expenses and apportionments are reported accurately.
Why does the Revenue Division look at previous years?
When a taxpayer is selected for an audit, all accounts are examined to verify that a taxpayer is in compliance with respect to all tax liabilities within the City’s statute of limitations.
Will the audit results be turned over to the Internal Revenue Service?
When audits involve earnings, the City does have a reciprocal agreement with the Internal Revenue Service and there is a significant chance that adjusted returns will be forwarded to the IRS.
Where in the tax law (City Ordinance) does it state I have to pay earnings tax?
Chapter 68, Section 68-382. Imposition of tax. You may review the City ordinance or call the City clerk’s office at 816-513-3360.
Where in the tax law (City Ordinance) does it state I have to provide my records?
Chapter 68, Section 68-395. Duties and authority of director. During the audit or examination process, many times taxpayers are asked to submit additional documentation to assist with the process. This allows for a more expedited and efficient examination.