"Contingent-Fee Audits by Independent Third Parties.

Some states authorize third parties to conduct contingent-fee audits. The state contracts with an independent third party to perform audits of income, sales, or property taxes. Particularly in the area of unclaimed property and escheat laws, the third party may be hired to perform single-state or multi-state audits.

Is there any limitation on a states right to use contingent-fee audits?

Do they safeguard sufficiently taxpayers due process rights?

In light of the fact that the apparent incentive of the examiner is to maximize the amount of tax due, is it possible to achieve a fair and impartial examination?"