Stay ahead of the tax curve
Navigating business personal property tax audits can be overwhelming. Different rules, reporting requirements, and valuation standards create plenty of room for risk.
This checklist highlights the most common problem areas and helps your team identify issues before an auditor does. Use it as a practical guide to strengthen your audit position and avoid costly surprises.
1. ASSET & EQUIPMENT RECORDS
Make sure your fixed asset records are accurate and audit-ready.
- Do asset listings reconcile with what’s currently in use?
- Are assets correctly tagged by location and jurisdiction?
- Have idle, disposed, or relocated assets been removed from filings?
2. CAPITAL PROJECT & EQUIPMENT PURCHASES
Flag
new investments that may
draw auditor attention.
- Were large equipment purchases made in the last 1–2 years?
- Are all capitalized assets categorized correctly for tax purposes?
- Have leased or lease-to-own assets been reported accurately?
3. DOCUMENTATION & TRANSFERS
Ensure supporting documents are clear and accessible.
- Can you document recent asset transfers, disposals, or relocations?
- Are reconciliation schedules current and tied to reported returns?
- Are invoices for large purchases readily available?
4.
Filing Accuracy & Archiving
Be ready to produce support files quickly if requested.
- Are all returns, schedules, and reconciliations filed on time and archived?
- Can supporting documents (invoices, depreciation schedules, etc.) be produced within 24–48 hours?
- Is your documentation process standardized across locations?
5. COMMON RED FLAGS TO WATCH OUT FOR:
Raise these with your Baden advisor before an auditor does:
- Large swings in reported asset values year-over-year
- Unusual write-offs or adjustments
- Recent site closures, relocations, or acquisitions
NEED SUPPORT?
If you’re unsure about any of the above—or if you’d like us to walk through the checklist with your team—just reach out. We’ll help you resolve issues now so you’re protected later.
Schedule a Free Consultation to see how
Baden Tax Management can help protect your business in 2025.
