Being selected for a Personal Property Audit by a Georgia county is a standard procedure intended to verify that a taxpayer's filings match their actual business records. While we do not represent clients in audits, we believe preparation is the key to a smooth experience.

1. Know the Auditor's Objective

The auditor’s primary goal is to ensure that all taxable equipment, furniture, and machinery owned on January 1st were accounted for on your PT-50P, PT-50M, or PT-50A forms.

2. Prepare Your Records

You should have the following source documents organized and ready for review:

• Federal Tax Records: Specifically your Depreciation Schedule (Form 4562), which auditors use as a primary reference.

• Fixed Asset Ledger: A comprehensive list of every piece of equipment and technology your business currently utilizes.

• Lease Agreements: Documentation for items you use but do not own, such as industrial printers or specialized machinery.

3. Identify "Ghost Assets"

A "ghost asset" is something you still have on your books but no longer physically own. Before an audit:

• Identify equipment that was scrapped, sold, or destroyed prior to the tax year.

• Ensure these items are documented as disposed of so you are not taxed on property you no longer possess.

4. Classification Review

Auditors verify that items are categorized correctly. Ensuring your assets are grouped properly (e.g., separating "Computers" from "Furniture") is essential for applying the correct depreciation rates.