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Business Cooperation Program (an additional com,Qonent of the Use Tax Audit� MuniServices will <br /> also provide its well-established Business Cooperation Program (BCP) to the County. Our team will <br /> identify and seek cooperation from local businesses to self accrue their use tax to the County in <br /> addition to working with contractors on major construction projects in the County. MuniServices <br /> pioneered the BCP service generating significant sales and use tax revenues and is actively working <br /> with multiple clients on major construction projects. <br /> If the City desires to have MuniServices to operate as the "Backstop" audit service, basic rules will <br /> be established to specify when MuniServices could submit sales and use tax errors that would be <br /> eligible for our contingency fee compensation. A list of accounts for investigation can be provided <br /> for pre-authorization by the City to avoid any duplication of effort with the City's in-house program. <br /> Examples of the rules would include the following examples with specific rules established as part <br /> of the contract: <br /> 1. In order for MuniServices to be credited with the identification and correction of a <br /> misallocation, the business must have been located in the city for a minimum of 6 months <br /> and we would have to submit the error to the SBOE at least one quarter prior to the city. <br /> 2. For Quarter Distribution Report (QDR) reporting errors for businesses that the city had <br /> historically been receiving local tax allocations, MuniServices would provide the city a one <br /> quarter"head start". This would mean that each quarter when the new quarterly payment <br /> data is received from the SBOE,MuniServices would not be allowed to submit inquiries until <br /> the following quarter giving the city the first opportunity to identify and report any <br /> suspected errors. <br /> MuniServices' Deliverables <br /> • MuniServices will provide quarterly reports identifying each taxpayer reporting error <br /> individually submitted to the SBE on the City's behalf, including business name, address, <br /> telephone number, California sales tax permit number, individuals contacted, date(s) of <br /> contact, nature of business, reason(s) for error, recommended corrective procedure and, if <br /> available,estimated sales and use tax revenue that should be forthcoming to the City. <br /> • MuniServices will provide status reports on sales tax inquiries filed on behalf of the City <br /> with the SBE.These status reports will include a list of accounts filed with the SBE including <br /> taxpayer name and address, date of knowledge (DOK), sales tax permit number, current <br /> status of accounts including estimate of amount of local tax due the City, and additional <br /> information as requested by the City. <br /> • MuniServices will conduct, at the request of the City, sales and use tax technical seminars <br /> and sales and use tax audit training. <br /> Confidentiality Provisions <br /> Through a Resolution that will need to be executed by City Council,MuniServices will be authorized <br /> to examine transaction tax, sales tax, and use tax records of the SBE provided to City pursuant to <br /> contract under the Bradley-Burns Uniform Sales and Use Tax Law and California Revenue & <br /> Taxation Code applicable to transactions and use taxes. If the City adopts a new transaction tax or <br /> taxes after the effective date of the agreement entered into between the City and MuniServices the <br /> intent is for the work to include that tax or taxes. <br /> ATTY/AGR/2015.101/MUNISERVICE LLC <br />