The Business Audit function reviews and audits business taxpayers to verify compliance with Virginia and Montgomery County tax laws, including business tangible personal property, machinery and tools and merchants’ capital taxes.
All businesses operating in Montgomery County are subject to audit. The basic goals of the function is to:
- Verify that information reported by the taxpayer is complete and accurate,
- Assist taxpayers in understanding reporting requirements and
- Create equity by assuring that every business pays its appropriate taxes.
Various data analysis techniques are used to review and compare reported business information with data from other sources. Businesses may be selected for audit based on financial, risk, trend, variance and exception analysis as well as randomly. During an audit, the business may be required to provide specific information or records for review, including documentation such as accounting records and journals, source documents and tax returns.