N.J. Admin. Code § 13:18-3.13

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:18-3.13 - Audits

(a) A licensee's records may be audited by sampling method or in total, at the discretion of the Chief Administrator, to verify the correctness and completeness of tax reports and refund claims.

1. The Chief Administrator shall send a notice of intention to conduct an audit by ordinary mail to the licensee. No such notice shall be provided if the Chief Administrator has reason to believe the licensee intends to discontinue operations in this State or to do any other act which may hinder the Chief Administrator's efforts to collect monies due.

2. Upon the auditor's appearance at the location where the required records are to be made available, the licensee shall produce such records upon demand. If such records are not produced within one hour, the auditor shall depart. In such a case, the Chief Administrator shall make an assessment in the manner prescribed by this subchapter.

3. Upon completion of the examination, the auditor shall discuss the findings with said licensee and shall offer the licensee the opportunity to present additional data which may affect the audit findings.

4. The auditor shall submit a report to the Chief Administrator including findings and recommendation(s) as to the disposition of the matter.

5. The Chief Administrator shall review the auditor's report and make such determination as is warranted. Notice of such determination shall be sent to the licensee by ordinary mail.

(b) The Chief Administrator shall notify all member jurisdictions in which operations were conducted, providing documentation obtained in the course of the audit.

(c) In the event that a licensee's records are not located within New Jersey, the licensee shall reimburse the Chief Administrator for all per diem and travel expenses of the auditors in traveling to the location where the licensee's records are kept.

(d) Failure to provide records required for the purpose of audit shall be deemed to toll any applicable record retention requirement until such records are provided to the Chief Administrator by the licensee.

(e) If any licensee fails to make records available upon proper request or if any licensee fails to maintain records from which the licensee's true liability may be determined, the Chief Administrator may, 30 days after requesting in writing that the records be made available or receiving notification of the insufficient records, determine a tax finding for each jurisdiction based upon the Chief Administrator's determination of the tax liability of such licensee. The Chief Administrator may make a determination from information previously furnished by the licensee, if available, and any other pertinent information that may be available.

(f) All audits conducted by the Chief Administrator shall be in compliance with the requirements of IFTA.

(g) A member jurisdiction may re-examine a base jurisdiction's audit findings if the member jurisdiction reviews the audit work papers and, within 45 days of receipt of the audit findings, notifies the base jurisdiction of any errors found during such review and of its intention to conduct the re-examination. Such re-examination by a member jurisdiction must be based exclusively on the audit sample period utilized by the base jurisdiction in conducting its audit.

(h) A member jurisdiction may re-audit a licensee if said member jurisdiction notifies the base jurisdiction and the licensee of reasonable cause for the re-audit.

(i) The re-audit or re-examination by a member jurisdiction must be performed in cooperation with the base jurisdiction. An adjustment to original audit findings as a result of such re-audit or re-examination must be reconciled with the original audit findings issued by the base jurisdiction. New audit findings shall be issued by the base jurisdiction. A member jurisdiction conducting a re-audit or re-examination shall pay its own expenses.

(j) Upon completion of an audit and the determination by the Chief Administrator that monies are due to any jurisdiction from a licensee, the Chief Administrator shall issue a demand for payment notice to the licensee. The notice shall demand payment within 30 days from the postmark date of the notice. Failure to respond to the demand for payment notice shall be cause for license suspension or revocation.

N.J. Admin. Code § 13:18-3.13