Audits; investigations; subpoenas; court orders

Sec. 5. (a) Investigations. The department, or its authorized agents, may examine the books, records, papers, or other data bearing on the

correctness of returns, including those pertinent records of third parties handling funds for the credit of, or acting as agent for, any person subject

to a listed tax. This includes, but is not limited to, records maintained by banks, savings and loan associations, and credit unions.

(b) Subpoena Power. (1) The department has the power to issue subpoenas compelling the attendance of any person called upon to testify

in any matter before the department. The department also has the power to compel the production of books and records.

(2) The department may subpoena records. In general, service may be made upon an individual or an individual acting in a representative

capacity by:

(A) sending a copy of the subpoena by registered or certified mail, or other public means by which a written acknowledgment of receipt

may be requested and obtained, to the persons [sic.] residence, place of business or employment with return receipt requested and returned

showing receipt of the subpoena; or

(B) delivering a copy of the subpoena to the person; or

(C) personally leaving a copy of the subpoena at the person's dwelling house or usual place of abode; or

(D) serving the person's agent as provided by rule, statute or valid agreement.

Whenever service is made under subdivision (C) or (D), the department shall also send by first class mail a copy of the subpoena to the last

known address of the person being served and this fact shall be shown upon the return.

(3) Service upon an organization may be made as follows:

(A) in the case of a domestic or foreign organization, upon an executive officer thereof, or if there is an agent appointed or deemed

by law to have been appointed to receive service, then upon such agent; or

(B) in the case of a partnership, upon a general partner thereof.

(c) Court Petition. Any failure or refusal to cooperate with the department in reviewing and auditing records and returns, including the

answering of questions, will be reported to the attorney general who may institute proceedings against the person or taxpayer who fails or refuses

to cooperate. Such proceedings include the filing of a petition setting forth the circumstances and facts of the demand of the department and the

refusal or failure to submit the required information.

(d) Court Order. The court, upon receiving such petition, shall issue an order to the named defendant to produce any requested evidence

or testimony. Unless the defendant can show good cause for not producing such evidence or giving such testimony, the court shall order the defendant

to produce evidence and offer any testimony required.