The entrance conference is a meeting between the auditor and the taxpayer or taxpayer's designated representative, prior to beginning the examination of the taxpayer's books and records. This is generally the first face-to-face meeting between the taxpayer or representative and the auditor.
The entrance conference is the foundation of a good audit and generally sets the tone of the auditor's dealings with the taxpayer. The taxpayer should be left with the impression that the auditor will be honest and fair, flexible and interested in serving the taxpayer, and willing to educate and assist the taxpayer.
During the entrance conference the auditor should make the taxpayer aware of the purpose of the audit and what is expected of the taxpayer, as well as what the taxpayer may expect of the auditor.
During the entrance conference for a fuels tax audit the following areas should be addressed.
The types of records maintained for fuels tax are unique to the industry because gallons of fuel rather than dollars and cents are being recorded. Some of the records that should be examined include:
NOTE:The person who prepares the returns for the taxpayer will usually have summaries, work papers, computer runs, etc. filed with the taxpayer's copy of the returns
A tour of the premises can be beneficial in:
The 67th Legislature established a four-year statute of limitation for all taxes. The Legislature also allowed for an extension of the statute of limitation up to two years on any single agreement. An Agreement to Extend Period of Limitation form is the most frequent method of extending the statute. The form, once it is signed by the auditor and authorized taxpayer representatives, and then constitutes a legal document. It establishes a new expiration date for specific reporting periods to allow for the completion of an audit. See the Auditing Fundamentals Manual for more information.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.