Skip to Main Content
State of California Franchise Tax Board

Site Tour Not Feasible

 

What to do without a site tour?

In addition to documents normally requested during a desk audit such as detailed schedules, invoices, process information, etc., you may want to:

  • Do an Internet search of the taxpayer and the taxpayer's industry for information such as descriptions of the manufacturing process, typical equipment used, pictures, diagrams of the manufacture process, specifications of the equipment and process, or product schematics.
  • Determine which property to review. Remember materiality.
  • Obtain a directory/location/department numbers of corporate facilities.
  • Obtain facility use plans to verify what is performed at the site and determine if the taxpayer performs the activity elsewhere. Different sites may perform different functions (i.e., the property being used is a near-by facility);
  • Obtain video tapes, booklets and leaflets from the marketing department;
  • Obtain a description(s) of the manufacturing process(es) with identified MIC property.
  • Request a site layout or map of the facility, which shows the location of MIC property.
  • Request a picture or video showing the property in use.
  • Study the facility and operations.
  • Request organization chart(s) and resume(s) or job description(s) for "on-line" employee(s), i.e., an employee(s) familiar with how the asset is used. Determine who will be interviewed and arrange appointments with key personnel to have a conference call or video conference. If possible, make interview appointments on different days.
  • For assets at issue, obtain the asset or serial number, manufacturer, and model number.
  • Obtain copies of relevant documents.
  • If you interview individuals, memorialize what was said in writing as soon as possible, including dates, names, titles, etc. Provide a copy to the taxpayer and allow the taxpayer the opportunity to respond to the interview write-up. While the write-up should be provided directly to your contact, you should request that the person interviewed also have an opportunity to review the write-up for accuracy.
  • Memorialize any phone interviews as soon as possible. Identify open items and issues to discuss with the taxpayer.
  • From collected information, look for potential issues such as dual-purpose property, non-qualified property, property used before or after the manufacturing process, and property used in a non-qualified activity.

 

Reference | Disclaimer

Help us improve our website

Don't include social security numbers or other personal/confidential information.



Thank you for your help.

If you need assistance, contact us.

Oops! Something went wrong.

We appreciate your feedback. Please try again later

Chat with an FTB Representative
 

You are leaving ftb.ca.gov

We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Review the site's security and confidentiality statements before using the site.

If you have any issues or technical problems, contact that site for assistance.

Ahora está saliendo de ftb.ca.gov

Nosotros no controlamos el sitio web al que se destina y no podemos aceptar ninguna responsabilidad por su contenido, enlaces, u ofertas. Revise las declaraciones de seguridad y confidencialidad del sitio antes de usar el sitio. Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.

Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.