Department of Taxation and Finance

Administration and Oversight of the Tax Protest Resolution Process (Follow-Up Report)

The Department of Taxation and Finance may make adjustments in the tax liabilities claimed by taxpayers or determine that amounts are owed by taxpayers who have not filed tax returns. If a taxpayer does not agree with an adjustment or a determination, the taxpayer can file a protest (formal or informal) with the Department. Most protests are informal, and they are resolved by Department staff. In audit report 2003-S-42, we examined the timeliness of the resolution process for informal protests and found that significant improvements had been made since our prior audit in 1994. We also noted that certain enhancements were needed in the Departmentís system for monitoring the status of unresolved protests and further improvements were needed in the timeliness of the resolution process. When we followed up on our audit recommendations, we found that they had been implemented.

For a complete copy of Report 2006-F-11 click here.