Sec. 12-420c. Managed audit agreements.
Sec. 12-420c. Managed audit agreements. (a) The commissioner may, in the
commissioner's sole discretion, enter into a managed audit agreement with an eligible
taxpayer. Under a managed audit agreement, the commissioner shall (1) agree to accept,
upon verification, the eligible taxpayer's determinations for purposes of making a deficiency assessment or otherwise determining the taxpayer's liability for the period under
review, (2) provide written procedural guidelines to be included as part of the managed
audit agreement, including, but not limited to, the general scope of the managed audit,
what records will be examined and what types of sampling techniques will be used, and
(3) review the results of the managed audit with the eligible taxpayer and issue an audit
determination.
(b) Such agreement may provide that, upon compliance by the taxpayer with all the
terms of said agreement, in calculating the total amount of the audit assessment resulting
from such managed audit the first ten thousand dollars of interest and ten per cent of
any additional interest otherwise due under subdivision (2) of section 12-415 shall not
be imposed. Any interest accruing after the initial assessment shall be at the rate of
interest specified in subdivision (2) of section 12-415.
(c) The commissioner may, in the commissioner's sole discretion, terminate a managed audit agreement and conduct an audit of an eligible taxpayer under subdivision
(1) of section 12-415, if the eligible taxpayer fails to fulfill any of the terms of a managed
audit agreement, or if the commissioner believes that a managed audit should not be
conducted for any other reason.
(d) Nothing in this section shall abridge or alter any other requirements, rights or
obligations of an eligible taxpayer or the commissioner granted or imposed by statute
or regulation, including, but not limited to, penalties for negligence or intentional disregard of the provisions of this chapter, except as provided in subsection (c) of this section;
penalties for failure to file returns or for fraud or intent to evade the provisions of this
chapter; limitation periods and waivers of limitation periods; the right of an eligible
taxpayer to petition for reassessment under section 12-418; the right of an eligible taxpayer to appeal an assessment under section 12-422 or the right of an eligible taxpayer
to claim a refund under section 12-425.
(P.A. 99-173, S. 62, 65; June Sp. Sess. P.A. 99-1, S. 42, 51; P.A. 02-103, S. 23.)
History: P.A. 99-173 effective June 23, 1999; June Sp. Sess. P.A. 99-1 added new Subsec. (b) re waiver of first $10,000
of interest and 10% of any additional interest otherwise due and redesignated former Subsecs. (b) and (c) as Subsecs. (c)
and (d), effective July 1, 1999; P.A. 02-103 made technical changes in Subsecs. (b) and (c).