Audit Procedures for Hotel Occupancy Tax
Appendix A, Reporting Data
- Terminal Inquiry
- Audit History
- Summary Information Page, Example
- Outlet Summary Information, Example
- Report Information, Example
- Data Information by Outlet, Example
- Summary of All Outlet Returns, Example
- Payment Information, Example
- Collection Information, Example
- File Maintenance
The following terminal inquiries may be helpful when conducting hotel audits.
The XICOLL should always be examined to determine if the taxpayer's reported data is balanced on the system. Any unfiled returns, underpayments, overpayments or other anomalies will be shown here.
- MTSUMM.taxpayer#. (displays master inquiry and summary status for all applicable taxes indicating the taxes the taxpayer is currently set up for on the system.)
- MTBALS.taxpayer#. (displays the current outstanding tax balance of the taxpayer)
- XICOLL.taxpayer#.tax-type. (displays all open and closed collection records on the taxpayer's account)
- PYWRNT.payee id#. (displays prior fiscal year payment information - refunds)
- XIXREF.taxpayer#. (cross-references assigned refunds and successor/predecessor liabilities)
- XIREFS.taxpayer#.tax-type.sub-type. (displays refunds for a specified period)
- MTIGDI.taxpayer# (displays multi-tax document index transactions by taxpayer)
- LISUMM.indicator.case id or bankrupt id. (displays bankruptcy summary information)
- NAMNUM.search code.exactness code.zip code.taxpayer name. (displays name vs. number)
- Search Code:
- 1 - Personal
- 2 - Business
- 3 - Bond Company
- Exactness Code:
- 1 - Personal Code Match
- 2 - Narrow Search
- 3 - Wide Search
- Search Code:
The Audit History is divided into the following sections:
- Summary Page
- Active Outlets During Audit Period
- Report Information
- Data Information By Outlet
- Summary of All Outlet Returns
- Payment Information
- Collection Information
The history information in the Auditing Fundamentals Manual is also applicable to Hotel Occupancy Tax. An audit should not be started without a current Audit History. As with all other taxes, an Audit History for the Hotel Occupancy Tax is requested via XIRPTS on the CICS System.
Summary Information Page, Example
Besides useful taxpayer information, prior audit information would be listed on this page.
Outlet Summary Information, Example
The information for each outlet will include:
- First sale
- Status date
- Capacity (The number of rooms available for occupancy. This should give you a good indication of the size of the hotel.)
Report Information, Example
The Report Information section will list any "Estimated Returns," "Non-Filer Returns," "Late Returns," "Valid Judgment Periods," or "Valid Certification Periods" during the requested period. An "X" will appear in the applicable period and category. XIDATA or XIPMTS inquiries should be run to ensure that there were not any amended returns during the period. The DUEDAY inquiry can be used to determine the correct due date for a report period. Returns should not be considered late if no amounts subject to taxes were reported ("zero returns").
Data Information by Outlet, Example
The Data Information by Outlet will be listed by period for each outlet that was active within the requested period. The auditor should examine all reported amounts for any fluctuation in amounts that appear to be unusual. These fluctuations may indicate a change in personnel, accounting procedures, or internal control. These fluctuations need to be considered when choosing periods for preliminary testing or sampling.
Summary of All Outlet Returns, Example
This report is in the same format as the Outlet Return Data. It summarizes the data information for all outlets.
Payment Information, Example
This report lists the postmark dates and types of payments made during each period. Hotel Occupancy Tax may be due on monthly or quarterly reports.
*If a taxpayer owes less than $500 for a calendar month or $1,500 for a calendar quarter, the taxpayer qualifies as a quarterly filer and the taxes are due and payable on the 20th day after the end of the calendar quarter.
Collection Information, Example
This section of the Audit History lists any collection activity for the taxpayer during the requested period.
In order to set-up a new hotel on the system, a Texas Tax Questionnaire-Hotel Occupancy Tax Form (Form AP-102) should be completed by the responsible parties. This questionnaire is not a permit application. There is no provision for the issuance of permits for Hotel Occupancy Tax at this time. This form is available for viewing on the Comptroller's website.
NOTE: During the course of an audit note in the Audit Plan any file maintenance that is needed. If file maintenance is required - there should be an employee in the local audit field office or local enforcement office that is capable of updating all information online. All corrections to the taxpayer's account should be made prior to submitting the audit package to the RPC for processing.
Maintained by the Audit Division