Nev. Admin. Code § 360.700 — 360.700

NAC 360.700    Contact to schedule appointment; contents of auditor’s letter;
period covered by audit; written request for extension of commencement date or
estimated completion date; consequences of failure to provide necessary
records. ( NRS
360.090 , 360.232 , 360.2915 )
1.  As soon as practicable after selection of
an account for audit, the auditor assigned to the audit shall attempt to
contact the taxpayer by telephone to schedule an appointment that is convenient
for the taxpayer and the auditor for the purpose of performing the audit. If
the auditor is unable to contact the taxpayer by telephone, the auditor shall
send a letter to the taxpayer requesting the taxpayer to contact the auditor to
schedule an appointment for the purpose of performing the audit.
2.  In scheduling an audit, the auditor and
the taxpayer must discuss:
(a) A date on which to commence the audit;
(b) An estimate of the date by which the audit will
be completed;
(c) The first and last months of the audit period;
(d) The nature of the business being audited and
the availability of records;
(e) The hours during which the records will be
available for review by the auditor;
(f) The contact person with whom the auditor is to
work in conducting the audit and reviewing the results of the audit; and
(g) The criteria set forth in subsection 4 for
changing the period that the audit will cover and extending the commencement
date or estimated completion date, or both, of the audit.
3.  After contacting the taxpayer pursuant to
subsection 1, the auditor shall send a letter to the taxpayer which includes:
(a) The date, time and location of the first
appointment for the audit;
(b) The first and last months of the audit period;
(c) The records that the taxpayer must make
available for the audit;
(d) The estimated completion date of the audit;
(e) A copy of the Taxpayers’ Bill of Rights;
(f) A copy of each statute that authorizes the
Department to perform an audit and issue a deficiency determination, if
necessary, and the process for appealing such a determination; and
(g) The name and telephone number of the auditor
and the supervisor of the auditor.
4.  The criteria to be used by the Department
in determining whether to change the period that the audit will cover and to
extend the commencement date or estimated completion date, or both, of the
audit include, without limitation:
(a) The time required by the taxpayer to gather
records necessary for the audit; and
(b) Circumstances determined by the Department to
be beyond the control of the taxpayer or the Department.
5.  A taxpayer may request an extension of
the commencement date or estimated completion date, or both, of the audit. Such
a request must be submitted in writing to the auditor and must set forth the
reason for the request. The auditor shall, on good cause shown, grant a
reasonable extension and shall notify the taxpayer in writing of the revised
commencement date or the revised estimated completion date, or both, of the
audit. If an extension is granted, the statute of limitations for the finding
of a deficiency will not be tolled during the period of the extension and a
waiver of the statute of limitations must be obtained from the taxpayer or the
audit period must be adjusted to account for the extension.
6.  If a taxpayer fails to provide the
records necessary to complete an audit by the estimated completion date or
revised estimated completion date, the auditor may:
(a) Determine an amount of delinquent taxes due
from the records provided;
(b) If the taxpayer has not provided any records,
estimate an amount of delinquent taxes due based on information regarding the
taxpayer that the Department has in its possession, including, without
limitation, any returns filed by the taxpayer; or
(c) Request the Department to issue a subpoena for
the production of records by the taxpayer.
(Added to NAC by Tax Comm’n by R045-01, eff. 11-1-2001)