Since Carolina Journal first reported on the issue two weeks ago, it?s been difficult to nail down whether the N.C. Revenue Department?s audit of large families is a new policy or something that?s been done in past years.
To recap, the Revenue Department has sent a letter to taxpayers who claimed a high number of dependents on their state returns asking them to provide additional details, including birth certificates and social security cards. Some parents are upset over the request, which they see as unfairly targeting them because of their family size.
Kenneth Lay, secretary of the department, says the audit is meant to crack down on taxpayers who claim excessive exemptions. He estimates the policy will save the state $3 million in fraudulent refunds. He would not elaborate on how much the audit was costing in manpower and overhead.
Since the CJ story ran, a couple other news outlets (State Government Radio and 680 WPTF-AM in Raleigh) have attempted to get an answer on whether this is the first time the state has conducted such an audit. In each instance, Lay declined to give a definite answer.
I?ve also followed up with the Revenue Department on that question, but haven?t gotten an answer, either. CJ submitted a freedom of information request for documents relating to the audit two weeks ago. I heard last week from a spokesman for the department who said they needed to resolve the records request ?before we provide any additional information, just because we don?t want to cloud the issue.?
All of the dozen or so families that I?ve spoken with about the audit say it?s the first time they?ve received such a request, even though they have marked a high number of dependents in past years. A couple CPAs ? one of whom has over 30 years experience ? say it?s the first time they?ve seen such an audit, too.
