If you are like most people, you probably wondered what comptroller tax audits are. Sure, you would know about tax audits considering that all of us pay taxes. But to put “comptroller” along with “tax audits” in order to have comptroller tax audits, well, that is something for the tax books.
In order to understand what it means, we need to first understand what comptroller is. A comptroller is a person in a management position who is in charge of the proper accounting and financial reporting of an organization. Most companies have finance comptrollers. All state governments, on the other hand, have a comptroller too. They basically take hold of the state’s finances to determine which businesses have not been paying their dues.
The work done by a state comptroller is done year-round. This is hardly surprising when you consider that taxes are the lifeblood of the state coffers. A comptroller is needed to deter tax evaders. Equally important, the office takes care to ensure that nobody in the state is over-paying taxes, either.
For the most part, a state tax comptroller does not put businesses under a fine auditing microscope unless if a particular company is considered a priority one account or has one of the highest records of taxes reported. Companies to be audited are also chosen based on a random computer-based selection per industry. A business might also be subjected to audit it’s been reported by members of the public or if information sharing with other government agencies indicate that a particular company has to be investigated for possible tax evasion.
Aside from the conditions above, a company may be investigated if it was revealed that it had $25,000 in unpaid taxes in the past. In other words, previous sinners do become a priority in the audits.
If you are a regular tax-paying business person, probably the only time you will see subjected to an account is if your tax payables become the highest in the state, or if some disgruntled employee reports you. If not that, if the comptroller’s computer chooses you in a random draw.
In any case, even if you have been selected for a tax audit, if you have nothing to hide because you have been faithfully paying your taxes consistently, then you have nothing to worry about. But even if you might run into problems with the state tax agency, you can still settle.