Board of Equalization; Report On Compliance Procedures And Controls As a Supplement to Our Report On Examination, Fiscal Year Ended June 30, 1968 1968

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RECOMMENDATION We recommend that the board establish the necessary procedures to facilitate the reconciliation of data processing totals for income tax collections to the cashier's totals by taxable year and that reconciliations of these totals be made on a periodic basis.
Estimated Tax Payment Requirements Sections 84-4939-40, R. CM. 1947, require that individuals whose income from sources other than those subject to withholding tax provisions equals or exceeds the income from sources subject
...to withholding make declarations of estimated tax and generally provides that such declarations shall be paid in two equal installments on April 15 and October 15 of the taxable year. The statute, however, -10- II p p does not provide for the assessment of penalty or interest for failure to make and pay such declarations and does not set any percentage requirements as to the amount which should be paid in as a basis for assessing penalty and interest.
Income tax collections are made on the following approximate percentage basis: Withheld during year 65% Paid at time of return filing 30% Estimated during year 5% 100% This percentage breakdown indicates that a substantial amount of money which should be received through declarations of estimated tax is not being received until returns are filed.


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