{"id":15811,"date":"2026-05-26T19:56:25","date_gmt":"2026-05-26T19:56:25","guid":{"rendered":"https:\/\/taxops.com\/?p=15811"},"modified":"2026-05-26T20:24:51","modified_gmt":"2026-05-26T20:24:51","slug":"auditor-independence-in-the-age-of-private-equity","status":"publish","type":"post","link":"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/","title":{"rendered":"Auditor Independence in the Age of Private Equity: What CFOs Need to Know"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/youtu.be\/XhS7wDZJ7Ks?si=AMtUWUpsV4Jwulns\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know-1024x576.png\" alt=\"\" class=\"wp-image-15815 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know-1024x576.png\" alt=\"\" class=\"wp-image-15815 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/a><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><a style=\"font-style: italic;\" href=\"https:\/\/tax-intelligence.captivate.fm\/listen\" target=\"_blank\" rel=\"noopener\" title=\"\">TaxOps Partne<\/a><em><a href=\"https:\/\/tax-intelligence.captivate.fm\/listen\" target=\"_blank\" rel=\"noopener\" title=\"\">r Lindsay Haskell and Corporate Tax Advisor Dan DeLau discuss what CFOs and Controllers Should Be Asking About Audited Financial Statements<\/a><\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Auditor Independence in the Age of Private Equity Roll-Ups<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A CFO sits across from a longtime audit partner. The engagement letter on the table bundles audit, tax provision work, and a 401(k) audit into a single fee. It looks efficient. It feels reasonable. And it quietly hands a piece of management&#8217;s own responsibility back to the firm that is supposed to be checking the work. That scenario, increasingly common in private and private-equity-backed companies, is exactly the kind of arrangement Lindsay Haskell and Dan DeLau, partners at TaxOps, want finance leaders to interrogate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a recent episode of Tax Intelligence with TaxOps, Haskell and DeLau took on auditor independence: what it means, why it eroded, and why the rise of private equity inside the CPA industry itself is forcing CFOs to ask harder questions than they have in two decades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A Brief History: Why Sarbanes-Oxley Still Matters<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Auditor independence is not an abstraction. It was forged in scandal. Enron, WorldCom, and Tyco produced the Sarbanes-Oxley Act of 2002 and, with it, hard limits on what an audit firm could do for its public-company clients. The central principle was simple: an auditor cannot audit its own work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before SOX, the same firm routinely prepared a company&#8217;s tax provision and then audited the financial statements that contained it. As DeLau described from personal experience, &#8220;the audit team would come in, and from what I saw to a large extent, it was like, well, we already had the professionals that are familiar with this, the tax team, they&#8217;ve already prepared it. So we&#8217;re just going to incorporate those numbers into the financial statements.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">SOX put a hard stop to that for public companies. For a stretch of years, many private companies voluntarily held themselves to similar standards, particularly those positioning for an IPO. &#8220;IPO readiness&#8221; became shorthand for adopting public-company discipline regardless of current filing status.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then the market shifted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Private Equity Shift And Why It Changed The Conversation<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As private equity has rolled up companies across nearly every sector, the IPO-readiness mindset has faded. Fewer private companies are preparing themselves to live under SEC scrutiny, and the implicit pressure to mirror public-company controls has weakened. Haskell put it plainly: the conversation about auditor independence &#8220;doesn&#8217;t feel like it&#8217;s talked about during the audit process itself, even.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That drift might be tolerable if the audit industry itself were standing still. It is not.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Private equity has now moved into the CPA profession. Because audit practices must remain CPA-owned, firms have restructured: the audit business stays under licensed ownership, while non-audit lines such as tax, advisory, and consulting absorb the private equity capital. Baker Tilly&#8217;s acquisition of Moss Adams, backed in part by private equity, is one widely reported example. DeLau noted that he recently received an email from a partner at a firm taking on private equity funding, and the signature line identified the company as &#8220;not a CPA firm.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The implications deserve attention. Private equity exists to generate returns. When an audit firm&#8217;s adjacent service lines are owned by investors whose primary mandate is profit, the question DeLau raised is unavoidable: &#8220;Are they really looking out for my best interest in everything that happens?&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Tax Provision Problem<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is where the conversation gets concrete and where finance leaders most often miss the risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The income tax provision is a footnote to the audited financial statements. Preparing it, including the journal entries, the rate reconciliation, and the footnote itself, is management&#8217;s responsibility. The audit firm&#8217;s job is to audit that work, not perform it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And yet Haskell described a pattern she is seeing repeatedly: companies switching audit firms to reduce cost, and the new firm bundling tax provision work, tax compliance, and even 401(k) audits into a single engagement. &#8220;They bundled all the fees together,&#8221; she said, &#8220;and basically said, here&#8217;s the fee for your audit, which included tax, 401k audit.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the surface, it reads as a cost win. Underneath, the company has just agreed to let its auditor prepare a material component of its own financial statements, then audit it. For a public company, that arrangement is prohibited. For a private company, it is permitted but it is still management&#8217;s responsibility, and the risk has not gone away.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Haskell described one CFO who saw it instantly. New to his role, he reviewed the proposed engagement letter, struck the tax provision scope, and told the firm he would sign for the audit only. He took the tax work elsewhere. That instinct, Haskell and DeLau argue, should be more common than it is.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ASU 2023-09: Why The Footnote Just Got More Visible<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The stakes around the provision are about to rise. FASB&#8217;s ASU 2023-09 took effect for public companies in 2025 and applies to private companies in 2026. The standard requires expanded income tax disclosures, including a more granular rate reconciliation in both dollars and percentages, and detail on income taxes paid by jurisdiction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Critically, it puts public and private companies on roughly the same disclosure footing. Private companies that historically published thinner tax footnotes will now disclose information they may never have surfaced before. The underlying calculations should already exist inside a well-run provision. The footnote simply makes more of that work visible to readers, lenders, investors, and acquirers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That visibility is one more reason management should own the provision rather than outsource it to the firm auditing it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What CFOs And Controllers Should Be Asking Now<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Haskell and DeLau are not declaring that every bundled engagement is improper. They are arguing that finance leaders should be asking questions that, for the most part, have stopped being asked. Among them:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Is our audit firm independent in fact, not just in form?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Who actually prepares our tax provision, and who reviews it?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf If our audit firm is private-equity-backed on the non-audit side, how does that influence the services they recommend?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Are bundled fee proposals genuinely cost-saving, or are they trading independence for convenience?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Do we have the internal capability, or an independent third party, to own the provision as management is required to?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As DeLau put it, &#8220;What does that relationship look like? What do I want it to look like? And what is in the best interest of the company that I&#8217;m serving?&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those are the questions Sarbanes-Oxley forced into boardrooms a generation ago. They are worth asking again.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/youtu.be\/XhS7wDZJ7Ks?si=xz_wkgsOodIajeCX\" target=\"_blank\" rel=\"noopener\" title=\"\">Listen to the Full Episode<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hear the full conversation between Lindsay Haskell and Dan DeLau on Tax Intelligence with TaxOps for a deeper look at auditor independence, the private equity shift inside the CPA profession, and what ASU 2023-09 means for your next provision cycle. Visit https:\/\/taxops.com\/ to listen and to explore how TaxOps supports CFOs, controllers, and tax leaders with independent provision and advisory work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About the Hosts<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"http:\/\/taxops.com\/jamie-overberg\" target=\"_blank\" rel=\"noopener\" title=\"\">Lindsay Haskell<\/a> \u2014 Partner, Corporate Tax. Lindsay Haskell has more than 15 years of experience in both public and private accounting, with a focus on corporate income tax provision and compliance, as well as international and state and local tax. She serves as a primary point of contact for clients,\u00a0 leading workflows and managing relationships for dynamic companies worldwide.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"http:\/\/www.taxops.com\/dan-delau\" target=\"_blank\" rel=\"noopener\" title=\"\">Dan DeLau<\/a> \u2014 Corporate Tax Adviser. Daniel DeLau is a co-founder of TaxOps and a boomerang to the business tax advisory mission at TaxOps. Following a promotion to partner at Ernst &amp; Young, Dan co-founded TaxOps to bring all the best of the big firm knowledge to businesses without the bureaucracy. Dan gained significant experience in international and domestic accounting and tax transactions within a U.S. corporate environment working for international accounting firms, and as tax director of multiple public and private companies, each with extensive and complex operations throughout the United States and internationally.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Listen to the full conversation on <a href=\"http:\/\/tax-intelligence.captivate.fm\/listen\u2197\" target=\"_blank\" rel=\"noopener\" title=\"\">Tax Intelligence<\/a>, available now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Tax Intelligence with TaxOps<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the podcast where experienced tax professionals share clear, practical insight on today&#8217;s most complex tax issues\u2013from SALT and federal tax strategy to ASC 740, tax minimization, and investment fun considerations. Each month, our experts break down what matters, what&#8217;s changing, and how to think strategically about tax\u2013so you can make informed decisions with confidence. <a href=\"https:\/\/tax-intelligence.captivate.fm\/listen\" target=\"_blank\" rel=\"noopener\" title=\"\">Listen today<\/a>!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About TaxOps<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At TaxOps, business tax is all we do. Our teams have the knowledge and focus to solve tax problems with practical tax answers. By hiring our Big Four-veteran leaders and experienced teams, you get tax strategists on your side supporting your strategy wherever business takes you. We deliver the strength, experience, and resources of a national tax brand with the hands-on client engagement of a boutique firm in federal, corporate, state and local and international tax as well as tax minimization strategies for businesses. For an introductory call, visit <a href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noopener\" title=\"\">TaxOps.com\/contact<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>&nbsp;<\/em><\/p>\n\n\n\n<div style=\"height:57px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\">Talk to a Business Tax Advocate<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>TaxOps Partner Lindsay Haskell and Corporate Tax Advisor Dan DeLau discuss what CFOs and Controllers Should Be Asking About Audited Financial Statements Auditor Independence in the Age of Private Equity Roll-Ups A CFO sits across from a longtime audit partner. The engagement letter on the table bundles audit, tax provision work, and a 401(k) audit [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":15815,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"<!-- wp:spacer {\"height\":\"41px\"} -->\n<div style=\"height:41px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:image {\"id\":14221,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/01\/2025-Colorado-State-and-Local-Tax-Legislation-1024x576.png\" alt=\"\" class=\"wp-image-14221\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><em>Judy Vorndran, lead partner of state and local tax at TaxOps, testified before the Colorado Senate Finance Committee on January 28, 2025. She addressed SB25-018 and SB25-046, proposed legislation that would create a searchable database and enhance audit confidentiality. Below is a summary of her remarks<\/em>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><em>Following testimony and discussion, the Finance Committee unanimously passed both bills. SB25-018 now moves to the Committee on Appropriations while SB25-046, as amended, has been referred to the full Senate and placed on the Senate consent calendar.<\/em> <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><em>\"It was an amazing experience to look in all of their faces and explain why these laws make Colorado more competitive and are good for both government and taxpayers<\/em>,\"<em>  ~ Judy Vorndran <\/em><\/p>\n<!-- \/wp:paragraph --><\/blockquote>\n<!-- \/wp:quote -->\n\n<!-- wp:group {\"layout\":{\"type\":\"constrained\"}} -->\n<div class=\"wp-block-group\"><!-- wp:spacer {\"height\":\"34px\"} -->\n<div style=\"height:34px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"wp-block-heading has-text-align-center\">Testimony on SB25-018, Online Search of Sales and Use Tax, and SB25-046, Local Government Tax Audit Confidentiality Standards<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:spacer {\"height\":\"42px\"} -->\n<div style=\"height:42px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer --><\/div>\n<!-- \/wp:group -->\n\n<!-- wp:paragraph -->\n<p>Good afternoon, members of the <a href=\"https:\/\/leg.colorado.gov\/committees\/finance\/2024-regular-session\" target=\"_blank\" rel=\"noopener\" title=\"Senate Finance Committee\">Senate Finance Committee<\/a>. My name is <a href=\"https:\/\/taxops.com\/judith-vorndran\/\" target=\"_blank\" rel=\"noopener\" title=\"Judy Vorndran\">Judy Vorndran<\/a>. I am a partner in the tax specialty firm TaxOps and a member of the &nbsp;Sales and Use Tax Simplification Task Force.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>I am here to testify in support of two bills, SB25-018 and SB25-046. A summary of my statement follows.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"43px\"} -->\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">SB25-018, Online Search of Sales and Use Tax<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>SB25-018 aims to create a searchable database for sales and use tax licenses and exemption certificates. This bill is crucial for improving transparency and compliance in our tax system.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">Key Points<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list -->\n<ul class=\"wp-block-list\"><!-- wp:list-item -->\n<li><strong>Importance of a Searchable Database:<\/strong><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>SB25-018 proposes the creation of a database at the state and department of revenue level, allowing taxpayers to look up licenses and entities.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Benefits for Taxpayers:<\/strong><ol><li>Having access to a searchable database would be a significant advantage for taxpayers. It would help them ensure that vendors are properly licensed and collecting the correct tax amounts.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>This measure would also align Colorado with other states, such as Texas, which already have similar databases in place. These databases have proven to be extremely helpful for taxpayers in those states.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Improved Compliance:<\/strong><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>The searchable database would facilitate better compliance with tax laws. Taxpayers would be able to verify the status of vendors and themselves, reducing the risk of errors and ensuring accurate tax collection.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>SB25-018 is a vital step towards enhancing transparency and compliance in Colorado's tax system. I urge the Committee to support this bill and help create a more efficient and taxpayer-friendly environment.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"46px\"} -->\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">SB25-046, Local Government Tax Audit Confidentiality Standards<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>SB25-046 addresses the confidentiality standards for local government sales or use tax audits. This bill would both protect taxpayer information and ensure fairer audit practices.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">Key Points<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>Confidentiality Concerns:<ol><li>SB25-046 aims to establish uniform confidentiality standards for local government tax audits. This is important because third-party auditors often conduct these audits, and there are concerns about how taxpayer information is handled and shared.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>Currently, third-party auditors are not always licensed professionals, and there is no regulation ensuring their confidentiality practices. This raises significant concerns about the protection of sensitive taxpayer information.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Issues with Third-Party Auditors:<ol><li>Many home-rule cities do not have captive auditors and rely on third-party auditors who may conduct audits on behalf of multiple jurisdictions. This can lead to inefficiencies and increased taxpayer burdens.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>There are instances where third-party auditors may target large taxpayers, leading to multiple audits across different cities. This practice is also burdensome and raises concerns about the confidentiality of taxpayer information.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Need for Regulation:<ol><li>There is a need for stricter regulation and oversight of third-party auditors to ensure they adhere to uniform confidentiality standards. This includes establishing ethical and fiduciary duties similar to those required of licensed professionals.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>The bill also highlights the importance of transparency in the contracts between cities and third-party auditors. These contracts should be subject to public scrutiny to ensure accountability.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>SB25-046 is essential for protecting taxpayer information and ensuring fair audit practices. I urge the Finance Committee to support this bill and help create a more transparent and accountable audit process. <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>I would be happy to answer related questions you may have, and I thank you for the opportunity to weigh in on these important pieces of legislation.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"57px\"} -->\n<div style=\"height:57px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:buttons {\"layout\":{\"type\":\"flex\",\"justifyContent\":\"center\"}} -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\">Talk to a Business Tax Advocate<\/a><\/div>\n<!-- \/wp:button --><\/div>\n<!-- \/wp:buttons -->\n\n<!-- wp:spacer {\"height\":\"53px\"} -->\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<!-- \/wp:separator -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:latest-posts \/-->","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[230,225,228,723,1166,1167,1165,229,226],"tags":[252,1145,284,1144,361,126,26,265,1135,492,41,1134,18,19,316,222,30,810,101,799,605,38,262,79,267,620,80,1138,1137,74,128],"class_list":["post-15811","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asc-740","category-events","category-federal-tax","category-podcast","category-rd","category-section","category-section-174","category-state-and-local","category-tax-news","tag-accountant","tag-advocate","tag-cfo","tag-colorado-society-of-cpa","tag-continuing-education","tag-cpa","tag-cpe","tag-finance-professional","tag-iaas","tag-leadership","tag-nexus","tag-saas","tag-sales-and-use-tax","tag-sales-tax","tag-salt","tag-software","tag-state-and-local-tax","tag-state-income-tax","tag-state-tax","tag-tax-advisor","tag-tax-automation","tag-tax-compliance","tag-tax-planning","tag-tax-preparer","tag-tax-professional","tag-tax-professionals","tag-tax-provider","tag-tax-tools","tag-tax-vendors","tag-taxops","tag-wayfair"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2026\/05\/Auditor-Independence-in-the-Age-of-Private-Equity-What-CFOs-Need-to-Know.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/15811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=15811"}],"version-history":[{"count":3,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/15811\/revisions"}],"predecessor-version":[{"id":15818,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/15811\/revisions\/15818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/15815"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=15811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=15811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=15811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}