Audits

How accounts are selected

The majority of businesses and individuals we audit are chosen at random. The rest are selected based on the nature of their tax liability or business operations.

How to prepare for an audit

To complete your audit as quickly and easily as possible, you should:

• collect all the required records for the audit period.
• make all the records available for your first meeting with the auditor.

Information covered in an audit

An audit will cover one or more of the following areas:

• Fuel: Amounts and classifications of taxes and fees reported on your tax return.
• Deductions and Exemptions: Amounts, classifications, and documentation included with your tax return.
• Mileage: Total and jurisdictional miles submitted on your reports and/or applications.

Number of years included in an audit

Type of Audit	Audit Period
Fuel Tax	up to 5 previous years
IRP (prorate)	up to 3 previous licensing periods

When and where audits are held

The auditor will contact you to schedule a convenient time and place to meet, and describe the records you’ll need. An audit appointment can take place at:

• your place of business.
• any prorate and fuel tax office.
• your accountant’s or attorney’s office.
• any public area, such as a restaurant, coffee shop, or library.

What to expect at an audit

We will review the completeness and accuracy of following types of records:

• International Registration Plan (IRP) applications
• Fuel tax returns
• Refund claims
• Heating oil returns

You may also receive helpful instructions and information to help you fill out your returns in the future.

Time needed for an audit

The time the audit will take depends on the type of audit being done and the condition of your records.

After the audit

• The auditor will tell you of any differences found during the audit and explain any tax adjustments before finalizing the audit.
• You will be given a copy of all audit documentation.
• The audit will be processed using the following procedure:

If you…	Your file will be…	You will receive…
Overpaid your taxes	Referred to our headquarters in Olympia for authorization of your refund.	A refund 2-3 weeks after the 30-day appeal period has ended.
Underpaid your taxes	Finalized by the auditor	Notice of the amount you owe and instructions on how to pay it.

Audit appeals

You may appeal the audit results within 30 days from the date you receive the audit report by writing to:

If you file an appeal before the payment due date, you won’t have to make payment until after your protest is resolved. However, you may want to pay any portion of the audit that you aren’t appealing to avoid additional interest charges. Interest continues to accrue on any amount ultimately found to be due.

Frequently asked questions

Will the information I show the auditor be kept confidential?

All information you provide will be maintained in strict confidence. You should be aware, however, that we have information-sharing agreements with the Internal Revenue Service and other agencies and jurisdictions.

Where can I get help establishing and maintaining records?

We recognize state and international rules governing prorate and fuel taxes are very complex, and are happy to help you establish and maintain effective reporting and record keeping. Contact your nearest prorate and fuel tax office for more information.