City examines business taxes/ Does audit make city anti-business?

By Jill K. Dion Editor Milford Mirror 5/14/2009 Democratic Alderman Suzanne Manning said she worries that hiring a company to audit tax records of local businesses might come across as seeming anti-business. The Board of Aldermen voted last week to hire Tax Management Associates to audit the records of 600 to 700 city businesses that have $50,000 or more in assessed personal property. Mayor James Richetelli Jr. and City Assessor Dan Thomas said it's "realistic" to expect the audit to turn up $200,000 in taxes owed the city.. "I'm concerned," Manning said, "because we're a business-friendly community. It might send a message that we're not business friendly." Manning also had concerns about specifics related to the agreement, such as notification and appeals processes for audited companies. Richetelli, however, who already has factored $200,000 in audit revenue into the 2009-10 budget, said he doesn't view the agreement as a slam on businesses. "The issue of Milford being busi-friendly," Richetelli said, "I think we are. This is not an anti-business proposal. Businesses of all sizes should rely on the fact that all are paying their fair share of taxes." Tax Management Associates will audit the selected Milford businesses for discrepancies between the amount of personal property owned and that claimed on tax documents. The tax company will get a onetime 25% of revenue it generates from identifying errors in personal property reporting, and 45% in "discovery fees" for personal property that hadn't been reported at all.

[Mr Milford]

This is such BS. Anti-business is the word.

[Joe]

This tax audit ageed to by the mayor and Bd.of Ald. is a gift wrapped issue for independents!
Should be an interesting election.

[Mr Milford]

Joe wrote:

This tax audit ageed to by the mayor and Bd.of Ald. is a gift wrapped issue for independents!
Should be an interesting election.

With a nice bow and hallmark card on it as well. I am still amazed both Mayor and Ald. agreed to this. Why not just give this collection agency the keys to the city while their at it.

[Concerned]

I've represented taxpayers in many PP audits, and what most companies don't realize is that the auditing firm will not tell the taxpayer if they're over-reporting. I had a client in Stratford that was audited and the auditor and the assessor never told my client that they over-reported certain costs and were owed $30,000 in back taxes.

[Concerned]

Some quick math shows that the City is planning on an increase of $12.5MM in assessment from the audit.