§ 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 such 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 subsection (b) of section 12-415 shall not be imposed. Any interest accruing after the initial assessment shall be at the rate of interest specified in subsection (b) 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 subsection (a) 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 file a written protest under section 12-418 ; the right of an eligible taxpayer to appeal an assessment or a reassessment under section 12-422 or the right of an eligible taxpayer to claim a refund under section 12-425 .

Legislative History

(P.A. 99-173, S. 62, 65; June Sp. Sess. P.A. 99-1, S. 42, 51; P.A. 02-103, S. 23; P.A. 22-117, S. 28.) 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); P.A. 22-117 amended Subsec. (b) to replace references to Sec. 12-415(2) with references to Sec. 12-415(b) and make a technical change, amended Subsec. (c) to replace reference to Sec. 12-415(1) with reference to Sec. 12-415(a), and amended Subsec. (d) to replace “petition for reassessment” with “file a written protest” and add “or a reassessment”, effective May 27, 2022.