Sales Tax and Use Tax Collections

Special Investigations - Attorney General’s Office

I. POLICY

The Maryland Attorney General’s Office may seek assistance with certain Sales Tax investigations; these investigations can be the result of action taken, or information obtained, by the Attorney General’s Office in Maryland’s Tax Court. Agents that are assigned to these cases are to make an undercover purchase from the selected business. These purchases are to be made at the selected business to ascertain if the licensee is conducting business in the State of Maryland and if they are collecting the proper Maryland Sales Tax.

II. PROCEDURES

The following is an outline of what steps are to be taken by the investigating Agent:

A. Make a purchase from the business, if applicable (minimal expenditure as possible).

B. Obtain a receipt for the purchase.

C. Case report number will be obtained for each investigation conducted.

D. An incident report will be prepared detailing the events of the purchase; tangible evidence and receipts from the purchase will be submitted along with a property form. The report should detail the date, time, name, and physical description of the person who conducted the sale, and any other pertinent information surrounding the undercover purchase. The incident report will be submitted to the agent’s immediate supervisor who will forward a copy of the report to the Agent in Charge.

E. Agents should remember that this report will generate the affidavit for the case made by the Attorney General’s Office.

F. All purchases will be made with advanced monies and expense forms will be used for reimbursement.

G. The Agent In-Charge will ensure a copy of the incident report is forwarded to the appropriate authority.

H. Agent supervisors will provide guidance to Agents that are assigned to these investigations.

I. Agents have fifteen (15) days to complete the investigation and forward their report to their supervisor for review.

J. Agents may be called to testify relevant to their investigation.

III. CANCELLATION

None.

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