Massachusetts Tax Alert®

November 20, 2008

M. Robinson & Company, PC

160 Federal Street, 6th Floor, Boston, MA 02110
Office: (617) 428-6900   Fax: (617) 428-0090

Solutions for Business and Tax ProblemsSM

"Discover Tax": 

The Destructive Potential
of Computerized Compliance Audits

How to Minimize Erroneous Computer-Generated Assessments and Levies
By Attorney Morris N. Robinson, CPA, LLM
November 20, 2008
 

 

Morris's PicIntroduction
On November 7, 2008 the Massachusetts Commissioner of Revenue announced that the Department of Revenue's computer-generated "Discover Tax" assessments now exceed $600 million. The DOR does not, however, announce erroneous "Discover Tax" assessments and levies. Anecdotal evidence strongly suggests these erroneous assessments and levies are in the millions of dollars. In our experience it sometimes takes years to resolve the administrative tangles caused by computer-generated assessment errors. In this article we suggest some common-sense policies your business clients can adopt to minimize exposure to erroneous computer-generated assessments and levies. CLICK FOR FULL ARTICLE
 
Topics covered in this article include:
 
A. THE LIMITATIONS OF COMPUTERIZED COMPLIANCE AUDITS 
 
B. COMMON-SENSE POLICIES THAT MINIMIZE EXPOSURE TO ERRONEOUS 
    ASSESSMENTS AND LEVIES
           - Register Businesses Carefully
           - Comply Precisely with Massachusetts Tax Laws
           - Respond Promptly and Accurately to All Computer Generated Correspondence
           - Use the DOR's (Department of Revenue) Problem Resolution Office
           - Obtain Experienced Professional Assistance