PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: Field audit expansion.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 50.12.010 and 50.12.070.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This is a new rule created due to the review of existing policies and procedures in accordance with Governor Locke's Executive Order 97-02. This rule was written in order to take an existing policy of the UI Tax Administration's Audit Program and develop a rule. The rule describes the audit expansion requirements of the department. The rule informs the general public of these audit expansion requirements followed by the department.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Department of Labor and Industries, the Department of Revenue and the Department of Licensing have similar programs.
Process for Developing New Rule: Informal meetings with stakeholders and interested parties.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting George Mante, UI Tax Regulatory Reform Coordinator, UI Tax Administration, Employment Security Department, P.O. Box 9046, Olympia, WA 98507-9046, fax (360) 902-9556.
September 14, 1999
Carver Gayton
Commissioner
Chapter 192-340-010The department's audit expansion requirements are as follows:
(1) If underreported or overreported wages for employees originally reported and/or new workers are discovered in the audit year, the department may expand to subsequent year(s). Subsequent year(s) and/or quarter(s) means up to the most recently completed calendar quarters where the tax and wages are reported.
(2) When the department feels there are facts that indicate that the employer has made a conscious effort to avoid taxation. The audit period may be expanded within statutory limitations.
(3) In the post audit interview, it is the responsibility of the department to ensure that audit exceptions are discussed and future reporting requirements are understood by the entity being audited.
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