Auditing Process FAQs
The City of North Las Vegas will commence audits of Business Licenses for reporting compliance beginning January 9, 2017 (reference CNLV Municipal Code 5.02)
If you are selected for a business license audit, you will be contacted by a business license auditor at which time the audit process will be discussed and an appointment will be made to meet with you, collect financial data and conduct a brief tour of your business to determine that you are properly classified for business license reporting.
A confirmation letter will be mailed and/or emailed to you that will outline the documents requested for the audit, as well as the audit start date, start time, estimated completion date and auditor’s contact information. We will attempt to accommodate your schedule and you will be provided several weeks to prepare the requested documentation. The audit is not meant to be disruptive to your business and will be conducted discreetly and confidentially. It is preferred that documents be submitted in an electronic format so that paper copies can be kept to an absolute minimum, although you may be requested to provide original documents for review.
If you have a CPA, accountant, bookkeeper or other person/company that you would like to represent you for the audit, you will be asked to provide a signed letter of representation so the auditor will have permission to speak with your designated representative.
If you are audited and it is determined you have under reported your gross receipts when determining your business license fees, you will be assessed the difference in license fees plus penalties and interest. If it is determined that you have over reported, you will be provided a credit or refund of the over payment.
If you know that you have been under reporting and you have not yet been contacted to schedule an audit, you may voluntarily disclose this information by contacting the Business License Department for more information on how to proceed. You will be required to pay the difference in business license fees to avoid penalties and interest. However, once you have been contacted to schedule an audit, you will be assessed penalties and interest if it is determined that you have an assessment for under reporting.
If at any time you have questions, please do not hesitate to contact the Business License Office at 702-633-2282 or email us at firstname.lastname@example.org for further assistance.
Still have questions? Contact 702-633-2282 or email us at email@example.com for more information.
I have been selected for an audit and an auditor has contacted me, so what happens next?
1. I have been selected for an audit and an auditor has contacted me, so what happens next?
The auditor will have discussed the audit process and will be providing you with a confirmation letter that outlines the requested documentation and dates relevant to the audit. The auditor will have reviewed your contact information to ensure your mailing address, email address and phone numbers are current and correct in our system. You will need to collect the requested documents and have them ready for the auditor when the audit begins. The auditor will review the documents and determine if prior reporting has been accurate. If there is an assessment, you will be provided with schedules used to determine the assessment and an explanation of reporting errors discovered.
I have been selected for audit but do not keep some of the documents requested. What do I do?
2. I have been selected for audit but do not keep some of the documents requested. What do I do?
The auditor will work with you and any documentation you have to substantiate your business license reporting. The auditor may request other documents you may have available. If necessary, estimates may be made to determine gross revenue amounts. However, estimates will be discussed with you prior to closing the audit. The auditor will always discuss the audit with you either in person, on the phone or electronically prior to finalizing the audit to ensure you understand any assessment in order to prevent future reporting mistakes.
I have a bookkeeper who handles my financials and does my business license reporting. Can you work with them instead of me and are you able to work with their schedule?
3. I have a bookkeeper who handles my financials and does my business license reporting. Can you work with them instead of me and are you able to work with their schedule?
The auditor will ask you to provide a letter of representation providing details for your appointed representative such as company, name and contact information. Every effort will be made to provide ample time for your representative to prepare documentation for the audit and to accommodate their business schedule. In most cases, your representative will already have the majority of the requested documents in electronic format.
Why do you need to tour my business?
4. Why do you need to tour my business?
If you have been in business for several years, it is possible that you may have either been originally misclassified when you received your initial business license, you may have added or taken away some of your services/items that would change your classification or perhaps business license classifications have been changed or consolidated since you initially registered. A tour assists the auditor in properly determining classification and compliance.
What if I don't agree with the final results of the audit?
5. What if I don’t agree with the final results of the audit?
The auditor will discuss with you the appeals process before finalizing the audit so that you are aware of the timelines you may need to meet in order to appeal the audit. Per CNLVMC 5.02, you have the right to appeal the audit by submitting an appeal form and providing additional documentation that you may not have been originally provided in the audit. The audit will be reviewed and if applicable, adjustments will be made to the audit and you will be provided with the final determination.
I'm pretty sure I have been under reporting my gross revenue on my business license form and I want to correct this prior to an audit. What do I do?
6. I’m pretty sure I have been under reporting my gross revenue on my business license form and I want to correct this prior to an audit. What do I do?
As long as you have not been contacted by an auditor to schedule an audit, you may voluntarily disclose your reporting mistakes by contacting the Business License Department. You will be requested to submit corrected returns (please provide supporting documentation) and pay the difference in licensing fees. If you have already been scheduled for an audit, you will be assessed any difference in licensing fees plus penalties and interest.