1200.1 - Tax Compliance Policy - Tax Compliance

Policy Area:  Tax Compliance
Policy Sub Area: N/A
Authority:  G.S. 143B-426.39 (1), (6)
Effective Date: 7/1/1995
Last Revision Date: N/A
Policy Owner/Division: Administration

Policy

Each state agency/institution must comply with Federal information returns and Form W-2 reporting requirements.   This includes developing procedures for accumulating calendar year data and preparing the appropriate information returns in the IRS acceptable media. 

Any agency/university that receives notification that the IRS intends to audit its financial records or any portion of those records or perform an on-site compliance check shall immediately notify the OSC of such an audit or compliance check. 
The agency/university shall also inform the IRS agent(s) that: 

  1. The agency/university is a component of the North Carolina State Government Financial Reporting Entity; 
  2. They must inform the OSC of their presence and intent to examine State financial records; and 
  3. They must, under OSC Administrative Policies and Procedures, copy the OSC on all correspondence generated in connection with their audit or compliance check. 

The audit or compliance check situations will be reviewed by the OSC for potential statewide tax and/or accounting system implications. The OSC will follow-up with the agency/university concerning the audit or compliance check. Also, the OSC will inquire as to what assistance, if any, the agency/university will need in responding to the IRS. 

Procedures

United States’ Internal Revenue Code, North Carolina Revenue Laws 

Accounting Guidance

N/A

Related Documents (Memos/Forms)

N/A

Revision History

N/A