Specifications include, but are not limited to: 1. The selected Company will perform audits of Town of Fairfield businesses that are selected by the Town Assessor. The Assessor will make available Personal Property Declarations of the selected taxpayers for all audit years in question along with any other pertinent information as deemed useful by the Assessor. The selected Company shall determine reporting accuracy by conducting a comparison of the Personal Property Declaration to the taxpayer’s Federal Income Tax Records, to the taxpayer’s Books of Account, or any other pertinent data necessary to complete the audit. Specifically, the selected Company shall be reviewing the following schedules; Schedule L, the Balance Sheet, Form 4562 Depreciation and Amortization, Location Fixed Asset/Depreciation Ledgers, General Ledgers, Trial Balances, Schedules of “Other Deductions” and any other schedule or books of account that is necessary to successfully complete the audit. Additionally, the selected Company shall also review the taxpayer’s lease agreements to determine reporting accuracy. 2. The selected Company will initiate contact with each selected account by letter, advising the taxpayer of its selection by the Town for a personal property audit and requesting access to their records. The selected Company will be responsible for follow-up with the selected accounts as needed. 3. At the Assessor’s request, the selected Company will arrange for a physical inspection of the selected taxpayer’s business location that will include an on-site visual inventory of all taxable personal property. 4. The selected Company will review, compare and reconcile each account’s personal property tax declaration for each relevant year with federal and state income tax returns, form 4562, Schedule L, General Ledger, balance sheets, disbursement ledgers, fixed asset and depreciation schedules, financial statements, invoices, operating expense reports, capital and operating leases, conditional sales agreements and building or leasehold ledgers as appropriate maintained by the taxpayer or other relevant records. 5. The selected Company will review any and all listings of fixed assets recorded as Leasehold and/or Building Improvements that the taxpayer claims to be included as realty and determine if any items should have been reported as personal property. 6. The selected Company will review the list of items purported to be out of town, declarations filed with other towns and shipping documents. Examine for accuracy for items not reported and will confirm with site visit as needed. 7. The selected Company will review receipts for items reported as sold or scrapped. Examine and reconcile sales receipts, salvage receipts, and confirm with a site visit as needed. 8. The selected Company will deliver to the Assessor a written Report of each account summarizing the procedures used in conducting the audit, and the results including all necessary supporting documentation. Such report shall be required to be filed with the Assessor regardless of whether the audit process discloses any reporting discrepancies. 9. The selected Company may be asked to participate in any discussions with the taxpayer seeking to resolve disputes or disagreements as to the valuation of the taxpayer’s personal property. Participation in such discussions is at the sole discretion of the Assessor. The ultimate decision(s) or determination(s) of any changes arising out of this agreement including but not limited to assessment or valuation (including penalty assessment) shall rest with the Town through the Assessor. 10. The selected Company may be asked to serve as a witness in any formal administrative or judicial hearing in connection with the appeal of any audit. Participation is at the sole discretion of the Assessor. 11. The selected Company will meet with the Assessor formally or informally upon request at a mutually agreed upon time throughout the duration of the audit program. 12. RFP should include cost of each audit, and cost for any additional services that may be charged such as meeting with the assessor, post audit meeting with taxpayer and serving as a witness as outlined above.
