By Ed Sealover | The Sum & Substance
Multiple medium- to large-sized companies say that they’ve been targeted for audits over and over by groups of a dozen or more municipalities in recent years, typically at the behest of a third-party auditing firm contracted by smaller cities to investigate potential tax scofflaws.
It’s not the general concept of the audits that bothers tax professionals and business leaders so much the frequency and number of these audits, as well as the fear that an unregulated company is sharing information from the investigations to spur more audits. The primary company contracting with Colorado cities to perform these audits says it does not share such information, but critics note that the firm — Revenue Recovery Group of Baton Rouge, Louisiana — refuses also to sign nondisclosure agreements.