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The business owner is responsible for reporting and remitting the appropriate City
Transaction Privilege (Sales) and Use taxes. Your business may be selected for an audit of
such taxes by the City. The audit generally covers the most recent 4 year period, but may
include the most recent 6 year period if the taxable amount is understated by 25% or more.
Also, an audit may extend to previously non-audited periods where no return was filed or
fraudulent returns were submitted.
The audit can be conducted at your business location, at the City offices or at a
mutually agreeable location, such as an accountant or bookkeeper office, during normal
business hours. If you desire the City to work directly with your external accountant,
bookkeeper, lawyer, or other external representative, then you will need to complete a power of attorney form (pdf/8kb/1pg). The
business owner would be responsible for payment of any additional taxes, interest, and
applicable penalties that are identified during the audit.
In the event your business is selected for an audit, state law requires the City to
offer you a multijurisdictional audit for all business activity in Arizona. If you
elect to have us perform a joint audit for all of the jurisdictions in which you operate,
the scope of the audit would be expanded to cover the most recent 4 year period for all
jurisdictions.
By making this election, all cities and towns would be prohibited from conducting
another audit of your business for any portion of the time period covered by this audit
unless an exception existed pursuant to ARS-42-2059. If you do not elect to have
this audit completed as a joint audit, your business will remain subject to an audit by
all other jurisdictions in which you have taxable activity. The State of Arizona may
or may not accept the audit as a joint audit and would not be prohibited from conducting
an audit of your business due to its refusal to participate.