Hello IFTA filers, hope you’re pink of health. Sometime back, we had shared a blog post on “Stay on Your Toes for IFTA Audits in Manitoba – Part- I”, and today we would post the second half of the blog. We hope we are informative enough to keep your eyes glued to the screen.
The second list of questions is right below keep reading to know more.
What will be the time period i will be audited upon?
Generally, you will be audited for a 3 year period. However, this audit process may extend to 4 year period if it is considered a necessity or the audit period is shorter depending on the licensee’s situation.
If the licensee fails to provide the records, the audit period would be extended from the date request was made until the documents are provided.
How Long Does The Audit Last?
Time and the duration is dependent on the size and the complexity of the licensee’s operations as well as the conditions of the licensee’s record. If the records are well organized, it would shorten the audit completion time.
How Will I Be Informed About The Results Of The Audit?
A closing conference would be held in person or via telephone, notifying the net changes over the audit period and present the result, i.e. the amount you owe or the refund gained by the licensee. Until and unless the closing conference is held to discuss the results, the audit is incomplete. This conference would take place at the end of the audit fieldwork while the auditor is at the licensee’s location if the audit is uncomplicated or the results are easily calculated.
If The Audit Result Is Announced For A Refund, How Do I Receive It?
A credit would be entered in your account and deducted from the next tax return or a check would be mailed to your address if you request.
What Happens If I Disagree With The Audit Filings?
If you don’t agree with the audit filings, you should feel free to discuss your reasons with the auditor, providing any facts and documentations supporting the same. However, the audit findings will be considered final unless a written notification of disagreement is received within 30 days of the date for the final audit letter.
Once The Auditing Process Is Completed, Do I Need To Maintain Records That Have Been Audited?
According to the agreement, the record retention is for four years from the date the tax return was due and this period is extended until the audit is completed. Once the audit is completed and finalized and the requirement is passed, you don’t require to maintain the records for IFTA purpose. Also, do note these records retention requirements is for IFTA only. Other authorities would ask for other record retention requirement to support other tax claims.
Well, this is the audit process followed in Manitoba and we shall soon come up with another blog on the state audit process for your better understanding. Until then, keep reading other blog posts shared by TaxIFTA.com and you can always reach us at 1-866-245-3918 or simply shoot an Email to support@taxexcise.com to understand and share queries. TaxIFTA.com will be happier to support you, help you in whichever way we can. Happy Auditing!