Texas Tax Code - Section 111.0042. Sampling In Auditing; Projecting Assessments
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Texas Laws > Tax Code > Texas Tax Code - Section 111.0042. Sampling In Auditing; Projecting Assessments
Section: 111.0022 111.003 111.0034 111.0035 111.0036 111.004 111.0041 111.0042 111.0043 111.0044 111.0045 111.0046 111.0047 111.0048 111.0049
§ 111.0042. SAMPLING IN AUDITING; PROJECTING
ASSESSMENTS. (a) Repealed by Acts 1983, 68th Leg., p. 982, ch.
234, § 1, eff. May 25, 1983.
(b) Sampling auditing methods are appropriate if:
(1) the taxpayer's records are so detailed, complex,
or voluminous that an audit of all detailed records would be
unreasonable or impractical;
(2) the taxpayer's records are inadequate or
insufficient, so that a competent audit for the period in question
is not otherwise possible; or
(3) the cost of an audit of all detailed records to the
taxpayer or to the state will be unreasonable in relation to the
benefits derived, and sampling procedures will produce a reasonable
(c) Before using a sample technique to establish a tax
liability, the comptroller or his designee must notify the taxpayer
in writing of the sampling procedure to be used.
(d) The sample must reflect as nearly as possible the normal
conditions under which the business was operated during the period
to which the audit applies. If a taxpayer can demonstrate that a
transaction in a sample period is not representative of the
taxpayer's business operations, the transaction shall be
eliminated from the sample and be separately assessed in the audit.
If records are inadequate to reflect accurately the business
operations of the taxpayer, the comptroller or his designee shall
determine the best information available and base his audit report
on that information.
(e) If the taxpayer demonstrates that any sampling method
used by the comptroller was not in accordance with generally
recognized sampling techniques, the audit will be dismissed as to
that portion of the audit established by projection based upon the
sampling method, and a new audit may be performed.
Acts 1981, 67th Leg., p. 1496, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 982, ch. 234, § 1, eff. May
Last modified: August 11, 2007