Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
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The Audit Process

The Comptroller's Office will call or write taxpayers to schedule audits. Maryland businesses will receive about a week's notice, while out-of-state businesses will receive more time to prepare. The Comptroller's Office is flexible about scheduling audits; however, businesses asking for lengthy postponements may need to sign an extension of limitations for the period of time covered by the audit.

Verification of Auditor's Authenticity

Only if we can't contact you by phone or letter will an auditor stop by your business to schedule an audit.  When the Comptroller's Office auditor meets with you to audit your business records, they will show you a photo I.D. on their first visit. We urge taxpayers who have any doubt about the authenticity of an I.D. to telephone us immediately at 410-767-1501 in the Baltimore area or 1-800-492-1752 if the business is located outside the Baltimore area.  

Initial Contact

During this initial contact, the auditor will ask general questions about the business and schedule an appointment to start the audit. You will also be asked to have certain records available to start the audit. In addition, the time period subject to the audit will be discussed.

The Audit

The audits usually begin with you having an opening conference with the auditor. The auditor will ask for a brief description of the business steps involved in making products, in sales, or in providing services and will ask how the business accounts for the taxes involved in the audit. You may want to take the auditor on a tour of your business or facility, so that he or she will better understand how all of the various components of the business relate to the records.

Review of Records

Very few audits involve a complete review of all the records in the audit period. Records are reviewed for a sample period usually agreed on by you and the auditor. Don't let the request for records overwhelm you, but don't wait until the day of the audit to start to gather the records, either. Try to have as many of the requested records available on the first day of the audit. If you're having problems gathering the records you need to be sure to gather information to get the audit started. Taxpayers are often granted extra time to gather records that are in storage.

If you have a problem finding a particular record we've asked for, talk to the auditor about it. They'll try to work with you to complete the audit as easily and efficiently as possible.

Closing the Audit and Results

When the audit is completed, the auditor will hold a closing conference with you, and you will receive a complete copy of the auditor's working papers. During the conference, be sure that you understand everything on the audit working papers.  You will be required to sign an acknowledgement of the audit closing meeting.  Remember, not every audit results in a tax assessment, so the audit results may be good news.



 
Links for My Business Was Audited
Tax Compliance Information
Business Tax Compliance
Why Do I Owe
My Business Was Audited
  The Audit Process
  Resolving Audit Problems
  Types of Audits We Conduct
  Audit Resources
 
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