Who is auditing me?
Who is Auditing Me?
Have you received an audit notice from the State? If you have, the first step is knowing who is auditing you and why you are being audited.
In California, you’re likely to be audited by one of three state agencies. In Illinois, there are only two:
CALIFORNIA TAX AGENCIES
Franchise Tax Board
The Franchise Tax Board is responsible for administering two major tax programs – individual taxes and corporate taxes.
Board of Equalization
California’s Board of Equalization administers four general tax programs: sales and use tax, property tax, special taxes (fuel, alcohol, tobacco), and the tax appellate program. While the first 3 are fairly straightforward, the Tax Appellate program is fairly broad and covers income tax appeals, property tax appeals, sales tax appeals, and homeowner and renter assistance appeals.
Employment Development Department
The Employment Development Department (EDD) is responsible for administering payroll tax collections. Also among the EDD’s responsibilities is administration of the unemployment and state disability taxes, and unemployment in general.
Â ILLINOIS TAX AGENCIES
Illinois Department of Revenue
Where California has two agencies (the BoE and the FTB) administering various tax programs, Illinois has only one. The Illinois Department of Revenue (IDOR) is responsible for the collection of individual and corporate income tax, sales and use tax, and special taxes (fuel, alcohol, and tobacco). The IDOR does not administer property tax collections; unlike California (where property taxes are administered partly by the individual county and partly by the state), property taxes in Illinois are completely administered by the individual counties, and appeals are in local courts. Also unlike California, Illinois does not have a formal tax appeal program.
Illinois Department of Employment Security
The Illinois Department of Employment Security (IDES) is Illinois’ version of California’s EDD. Like the EDD, the IDES is responsible for administering payroll tax collections, unemployment and other employee and employment-related programs. Unlike California, Illinois does not collect a state disability tax.
If you have been selected for a state tax audit – or if you’ve been notified that you owe state taxes and weren’t aware you had a filing obligation, call our office at (818) 480-3280. We’re here to help you through this process.