Managed Audit
In short
A self-examination of the business's own records under Department guidance. Once ADOR accepts the application, interest is removed and penalties are waived, and the right to protest the results is kept.
In full
A Managed Audit allows a business to review its own invoices, checks and accounting records under the Department's guidance to determine what is owed for specific tax types. It is one of two programs ADOR groups under disclosure and compliance.
It is aimed at a currently registered business that wants to check its own records and fix errors. That is a different taxpayer from the one the Voluntary Disclosure Program is for.
The benefits are specific and they are not the same as the other program's. Interest is removed. Penalties are waived. The right to protest the results is retained.
That last point is the one that separates the two programs. A voluntary disclosure agreement is final, and a managed audit is not.
Transaction privilege and use tax is eligible, as is corporate income tax. Individual income tax and withholding tax are not.
Participation is not automatic. A formal application must be submitted and accepted before any penalty or interest relief follows, and an applicant who does not meet the conditions is denied.
| Voluntary Disclosure | Managed Audit | |
|---|---|---|
| Best for | Unregistered or behind on filings | Registered, wants to check its own records |
| Interest | Standard interest applies | Removed |
| Penalties | Waived | Waived |
| Protest rights | None — the agreement is final | Retained |
| TPT eligible | Yes | Yes |
| Individual income and withholding | Yes | No |
ADOR Disclosure and Compliance Programs; ADOR Managed Audit Program; ADOR TPT Audit