The N.C. Department of Revenue appears to be keeping on file personal information obtained through its review of large families, just as it does with traditional audits.

In an e-mail dated March 9, 2009, a Revenue Department staffer asks the following question of his supervisor:

I have had several calls from the taxpayers that are concerned as to what we will be doing with the info they send once it has been verified (especially copies of [Social Security] cards). I was wondering if, in the lack of filing space, we could shredd [sic] this info once we have verified the documentation and released the refund.

The supervisor’s response two minutes later:

At present, we will need to maintain records in the same manner as other audits.

As reported previously, the Revenue Department has requested additional details on the dependents of about 6,700 taxpayers this year, including copies of birth certificates and Social Security cards. Failure to comply meant a forfeited tax refund.

Filers had 30 days to fulfill the request. Auditors also requested that taxpayers who filed as head of household provide a divorce decree or custody agreement, and to provide documents ?to substantiate proper support of any dependents that did not live with you during the year(s) in question.?

The review kicked in for some taxpayers who claimed eight or more dependents on their return.