Managed Audit

When the following requirements are met…

• The managed audit is completed on time;
• The correct amount of tax is paid;
• The managed audit results are accurate; and
• Additional information or documents are not needed.

The Tax Division will…

• Waive all penalties;
• Waive up to two-thirds of the interest;
• Agree not to audit you for tax type and period.

This program is open to any business or individual that has any tax liability for a tax administered by the Tax Division. Taxpayers may participate if:

• Records are readily available;
• Ability to complete the audit within a certain period (30, 60, or 90 days);
• Are not under audit now by the Tax Division;
• Have not been audited by the Tax Division within the five-year period immediately preceding your application;
• Do not have an appeal pending involving a Tax Division matter or have been in federal bankruptcy or state receivership proceedings.

To get started, please complete the Managed Audit Application Form listed on the Audit Forms page and mail to:

     Rhode Island Division of Taxation

     Audit & Investigation Section

     One Capitol Hill

     Providence, RI 02908  

Upon approval into the program, a dedicated agent will contact you and explain procedures, timelines, and the audit functions you will perform. Your agent will provide you with industry specific instructions and provide guidance throughout the course of the audit.

Here is a summary of our simple process:

1. Fill out the application and submit it to Tax Division
2. If your application is approved, a dedicated agent is assigned to help guide you through the process and is available for any questions
3. Your agent will send a list of the required documentation
4. Complete your managed audit within the agreed time frame, while working with your agent
5. Submit managed audit results and pay any tax due
6. Your agent will review the results
7. Penalties may be waived, and/or interest is billed at a reduced rate
8. Your agent will schedule a conference to review the results and help you remain in compliance

The Tax Division will assist during the managed audit process, from submission of the initial application, to the final step of waiving all penalties. When an application for the program is approved, a revenue agent is dedicated to guide you through the process. Your revenue agent will be available to answer any questions, by phone, email, or through a virtual meeting.

If after starting the process, you decide not to complete the audit, or no longer have the time to do it, your dedicated agent will complete the audit for you, and you will still get some benefits.

If the managed audit program is not right for you, we are available to discuss other options or programs that may be a better fit. Please refer to the “Contact Us” section below.

You may call or email your dedicated agent, with any questions or guidance, at any time during the managed audit process. If you have any general questions regarding the program, please see the “Contact Us” section below.