Our audit approach for appraising business personal property looks for material compliance, not strict compliance. With my Masters Degree in Public Administration, Evans & Associates bring an administrative perspective as compared to an accounting perspective to our auditing philosophy. It is possible to project numbers of significant non-compliance by saying that 60%-90% of all audited accounts are being discovered. Using the cost approach, we are able to arrive at a very precise estimate of value for business equipment and fixtures. Therefore, some will argue, any variance from that figure is discoverable. We, on the other hand, based upon our experience, consider a very high non-compliance rate to be abnormal. It is more likely to be an indication of an overly aggressive auditor or audit program.
The cost approach to value is a way to estimate business equipment valuation that the Assessor uses for tax purposes. While we do look for and discover significant unreported and under reported value, we recommend that the smaller variances be considered immaterial. They are useful as a learning tool for educating the business taxpayer for improved future compliance and also produce positive public relations between the county and taxpayer.
Additionally, we consider taxpayer education as one of the most valuable services we offer. During the audit process, we talk extensively with the business owners and controllers. We spend considerable time informing and educating them on the details of business personal property listing. We educate them as to the types of assets reportable and how to appropriately list them for reporting purposes. The non-taxation of smaller variances allows us to teach them while generating significant good-will towards the county.
In summary, we will strive to assist you in the auditing of business personal property in your county. We will provide you with a high level of satisfaction, personal service, and an administrative perspective as we educate the taxpayers and bring increased equity into the tax base of your county.
Phil Evans, President & Owner