Tax Professionals Handbook

The Department is asking you to help identify individuals or businesses that do not file or pay state taxes (sales, income, withholding, etc.) or who file fraudulent tax returns. In addition, there have been instances of fraud identified in the Federal/State E-File Program. EROs can assist NCDOR in identifying potentially fraudulent returns before the Department receives them.

One way EROs can help is to verify the identity of taxpayers who want their returns filed electronically, especially if they are not regular clients. Request a picture ID and a second form of identification, such as a voter registration card, credit card or work pay stub. Some examples of potential fraudulent activities are:

• W-2s that are typed, handwritten, duplicated or have visible corrections
• W-2s from a company in the area that differs from other W-2s from the same company
• A suspicious-acting taxpayer or a suspicious person accompanying a taxpayer
• Multiple refunds to the same address or post office box
• Earnings, income and/or deductions that are not well documented
• Similar returns with the same amount of refund, same number of dependents and same number of W-2s

Transmitting fraudulent returns is against North Carolina Administrative Code .0118, Electronic Filing of Individual Income Tax Returns, and can cause suspension from the E-File program.

If you have any information that you wish to provide, please contact our Tax Fraud Hotline Monday through Friday between 8:00 am and 5:00 pm at 1-800-232-4939. The information that you provide and the source of the information will be kept confidential. The NCDOR appreciates your help!