N.C. Reforms Have Increased Fraud Protection for Taxpayers

Date: February 14, 2018

 

Tax refund fraud has been a growing problem across the U.S., but thanks to reforms put in place in North Carolina, more of the state’s families and businesses are being protected from identity theft.

For example, the North Carolina Competes Act, passed in 2015 by the General Assembly, requires that businesses submit employee wage forms electronically to the Department of Revenue (DOR) earlier, by Jan. 31, which gives the DOR a better chance of identifying fraudulent returns. This law also strengthened the compliance reporting requirements for alcohol sales, cash-intensive businesses, contractors, lottery winners, and licensing boards.

Another measure is the Pilot Audit Program, which has given the DOR better analytical modeling resources, which can be used to identify tax filing discrepancies, improve audit selection, and view historical data and emerging trends. Finally, Senate Bill 628, passed in 2017, strengthens the transaction reporting requirements for debit and credit card processors.

As a result of these measures, the DOR pursued:

  • 43,000 cases of refund and identity theft fraud in the 2016-2017 fiscal year for taxpayer savings of $57 million
  • 23 cases of fraud against cash-intensive businesses for savings of $1.2 million
  • 34 cases of fraud involving credit and debit card transactions for savings of $1.6 million
  • 4,000 cases against home-based businesses for savings of $18.1 million

 

“Tax season has never been anyone’s favorite time of year,” House Speaker Tim Moore said in a press release, “but the North Carolina House has worked to make it less painful and a lot safer for our citizens. … These safeguards maintain a fairer economy where every business and citizen is treated equally.”

 

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy