Practical Guideline for Assessing Penalties
- If no inventory is reported/returned on the Tax Return or Schedule B, then the entire inventory amount is penalized. (except minimal supplies-$1,000)
- Inventory discovered through audit/review will be penalized on the difference in the returned value and the assessed value.
- Fixed assets are subject to penalty if the assets are not listed on Schedule A regardless of what is on the Tax Return. The unreported assets need to be extracted and placed on a separate spreadsheet in order to calculate the penalty (on the 100% depreciated value)
The Board of Assessors approved this procedure for assessing penalties on 12/20/01.