Texas Tax Code

§ 111.0042 — SAMPLING IN AUDITING; PROJECTING ASSESSMENTS

TX § 111.0042Title 2. STATE TAXATION · Part B. ENFORCEMENT AND COLLECTION · Ch. 111. COLLECTION PROCEDURES · Art. A. COLLECTION DUTIES AND POWERS

Statute text

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(a)Repealed by Acts 1983, 68th Leg., p. 982, ch. 234, Sec. 1, eff.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 result.

(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.

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Legislative history

Acts 1981, 67th Leg., p. 1496, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1983, 68th Leg., p. 982, ch. 234, Sec. 1, eff. May 25, 1983.