John Szoka
  • About John Szoka
  • General Assembly
    • NCGA Website
    • How Laws Are Made
    • Legislative Building
    • Our State Seal
    • State Constitution
    • Glossary of Terms
  • Maps
    • District 45 Map
    • House Districts Map
  • Links
    • State Agencies
    • State Website
    • Court System

Tax Fraud Prevention Saves State Revenue

Posted on February 8, 2018 by admin in Privacy, Speaker Moore, Tax Reform, Taxes

Identity TheftFraud prevention laws recently enacted by the North Carolina General Assembly are guarding against identity theft and protecting millions in state revenue from scammers this tax season.

The state Department of Revenue (DOR) attributed an 18% uptick in cases of identified fraud and a 20% uptick in savings for the 2016-2017 Fiscal Year to the legislature’s tax compliance reforms that are in place to protect refunds again this year.

The series of new laws strengthen DOR’s audit strategy and technology resources while streamlining the process of identifying fraud through the state’s Government Data Analytics Center (GDAC), according to the agency.

“Tax season has never been any citizen’s favorite time of year,” said House Speaker Tim Moore (R-Cleveland), “but the North Carolina House has worked to make it less painful and a lot safer for our citizens.”

In 2015 the state General Assembly passed the North Carolina Competes Act, which requires businesses to submit their employees’ wage forms electronically to DOR by January 31st.

Receiving electronic forms from employers earlier in tax season significantly enhances DOR’s ability to detect fraudulent refunds and recover taxes owed to the state.

The North Carolina Competes Act also strengthened compliance reporting requirements for alcohol transactions, cash intensive businesses, lottery winners, licensing boards, and contractors.

“The General Assembly has kept a bipartisan commitment to reduce fraud, identify theft, and other tax avoidance activities,” Speaker Moore continued.

The state General Assembly and DOR also initiated a Pilot Audit Program in 2015 to augment the department’s advanced analytical modeling with resources previously unavailable to its staff.

In addition to increased revenues from the pilot compliance initiative, DOR also increased its operational and financial efficiency. The program improves the state’s capability to identify discrepancies in tax filings, improve audit selection and allocate resources effectively.

The pilot program provides DOR’s field staff with new insights, including embedded geographical search capabilities, historical data, and emerging trends.

“These safeguards maintain a fairer economy where every business and citizen is treated equally,” Moore said.

In 2017 the legislature passed Senate Bill 628 to strengthen transaction reporting requirements on debit and credit card processors and further reduce fraudulent income claims.

The state Department of Revenue pursued 43,000 cases of refund and identity theft fraud in the 2016-2017 fiscal year, saving taxpayers $57 million.

The agency pursued 23 cases of fraud against cash intensive businesses last year, saving taxpayers $1.2 million; 34 cases of fraud involving credit and debit card transactions for $1.6 million in savings; and 4,000 cases against home-based businesses in the 2016-17 fiscal year for $18.1 million in taxpayer savings.

Refunds may take a little longer under the fraud prevention process and filing early can further protect against identity theft. North Carolinians are encouraged to file their tax returns as soon as possible.


Background

This week marks the start of the 2018 tax filing season for the North Carolina Department of Revenue (DOR). All citizens and business are reminded that filing and paying 2017 taxes is a civic duty essential to delivering core services from the North Carolina state government .

The DOR is now accepting personal income tax, corporate income tax, partnerships, S-Corp, and Trusts at www.ncdor.gov. Citizens that qualify can file their taxes for free online at https://www.ncdor.gov/ncfreefile.

Contact Representative Szoka

EmailFacebookTwitter

Search

The Economy Then and Now

Articles by Category

Recent Articles

  • 2019 Budget Passes First Vote in NC House
  • Tax collections could lead to $700 million windfall
  • NC House Members Urge Governor Cooper to Maintain Balance on State Supreme Court
  • House Enacts Voter ID With Veto Override
  • $793 Million for Florence Recovery
  • 3238
  • Legislature to Convene October 2 for Hurricane Relief
  • State Revenues Exceed Forecast by Over $400 million
  • Hurricane Relief Committee to Investigate Recovery Delays
  • Rep. Szoka and the NC House Keeps their Promises
  • Life, Liberty and the pursuit of Happiness
  • Revenue estimates $252.8 million ahead of targets
  • Flag Day 2018
  • Legislature Overrides Budget Veto
  • Remembering the Day that Saved the World
  • Houses Passes School Safety Programs
  • Legislature Agrees to Adjustments for Current State Budget
  • Six statistics Carolinians should know
  • Employment Increases by more than 85,000
  • Safeguarding Emergency Equipment
  • LEO: No Need to Get Angry
  • The Pharmacy Patient Fair Practices Act
  • A Statue for North Carolina’s Favorite Son
  • A Good and Faithful Servant
  • Remembering Washington on President’s Day
  • A New Pipeline of Money to Public Schools
  • Get Outta My Dreams, Get Into My Car
  • Tax Fraud Prevention Saves State Revenue
  • NC in Top Tier for Economic Preparedness
  • The Electoral Freedom Act of 2017
  • North Carolina in Top 5 States for Wage Growth
  • Republicans Credited For Strong State Economy
  • Governor Cooper Declares State of Emergency
  • Throwback Thursday: The Education Lottery
  • Unemployment Continues to Drop
A constituent service to the people of Cumberland County. Not maintained at taxpayer expense.