011-6 Wyo. Code R. § 6-12

Current through April 27, 2019

Section 6-12 - Audit Rights and Responsibilities

(a) Financial data and other information prescribed by these rules and contained in reporting forms required to be filed with the Department are subject to audit by the Department of Audit and examination by the Department of Revenue. The purpose of such audit is to:

• (i) Verify the accuracy of the financial data submitted by the taxpayer or operator as well as to determine whether such financial data is in accordance with generally accepted accounting principles; and

• (ii) Verify the accuracy of all other data or information contained in the required reporting forms.

(b) Audits shall be conducted at the discretion of the Department of Audit or upon request by the Department of Revenue.

(c) All pertinent records, including but not limited to accounting, production sales and tax records, shall be maintained by the taxpayer and reporting entity in accordance with the time periods established by W.S. 39-14-108(b)(vii) for coal, W.S. W.S. W.S. 39-14-208(b)(vii) for natural gas, crude oil or lease condensate, W.S. W.S. W.S. 39-14-308(b)(vii) for trona, W.S. W.S. W.S. 39-14-408(b)(vii) for bentonite, W.S. W.S. W.S. 39-14-508(b)(vii) for uranium, W.S. W.S. W.S. 39-14-608(b)(vii) for sand and gravel, W.S. W.S. W.S. 39-14-708(b)(vii) for other valuable deposits. These records shall include the work papers reconciling source documents to the tax returns. Records shall be made available to the auditors during regular business hours at the place of business where such records are normally kept unless otherwise arranged by mutual consent.

• (i) Mineral purchase contracts, orders or agreements, complete with supporting schedules and documentation, shall be examined by auditors upon request and such records may be photocopied by auditors with the consent of the taxpayer. The written results (audit report) required by W.S. W.S. W.S. 39-14-108(b)(v) (Q for coal, W.S. W.S. W.S. 39-14-208(b)(v) (Q for natural gas, crude oil or lease condensate, W.S. W.S. W.S. 39-14-308(b)(v) (Q for trona, W S. 39-14-408(b)(v)(C) for bentonite, W.S. W.S. W.S. 39-14-508(b)(v)(C) for uranium, W.S. 39-14- 608(b)(v)(C) for sand and gravel, W.S. W.S. W.S. 39-14-708(b)(v)(C) for other valuable deposits shall include specific references to supporting documentation necessary to sustain and explain audit findings.

• (ii) All records relating to production year 1989 and subsequent production years shall be retained for a minimum of five (5) years unless otherwise provided by law.

(d) The Department of Revenue shall compute severance tax liability and issue a notice to the taxpayer audited of severance taxes due if a deficiency is determined or amount of refund or credit if overpayment is determined. This notice shall be mailed along with the final audit report, after review by the Department of the final audit findings.

(e) No employee of the state shall receive a bonus, be promoted or in any way rewarded on the basis of the amount of assessments or collections from taxpayers.

(f) The Department shall certify the amended taxable value resulting from a mineral tax audit and final determination to the appropriate county assessors as otherwise provided in these rules.

011-6 Wyo. Code R. § 6-12