Loss of Contingency Fee Audits

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Loss of Contingency Fee Audits

• How has it impacted your counties audit
  compliance program?
• North Carolina Department of Revenue
• 2013 Advanced Personal Property Seminar

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NCDOR Advanced Personal Property Seminar

• Moderator
• Tina Stone, PPS NCDOR
• Panelist
• Johnny Bailey
  County Tax Services, Inc
• Kirk Boone, PPS Tax
  Management Associates
• Phil Evans Philip Evans
  Consulting
• Jim Turner, C.P.A, CVA, CMEA Turner
  Business Appraisals

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Background

• Senate Bill 462 prohibits the use of a third
  party agent if paid on a contingent basis.
• Senate Bill 847 revised the timetable and made it
  effective for only two years beginning July 1,
  2013 until July 1, 2015.
• From July 1, 2013 until July 1, 2015, cities and
  counties shall not renew any contingency fee
  based contracts for these services. From July 1,
  2013 until July 1, 2015 cities and counties shall
  not assign further audits on a contingency fee
  basis to an auditing firm under a contract that
  meets all the following conditions (i) the
  contract would have been prohibited under this
  act had the contract been entered into after July
  1, 2013, and (ii) the contract allows the
  assignment of audits on a discretionary basis.

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Why was this law introduced ?

• Is this the public perception?

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Question One

• What is your perception on why this law was
  created?

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Question Two

• How has your marketing approach to counties
  changed?
• What impact, if any, has it had on relationships
  with the counties?

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Question Three

• Is your business able to adapt in order to comply
  with the new law? How so?

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Question Four

• What audit business practices do you feel are
  currently creating issues for the business owner
  in relation to using the contingency fee
  structure?

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Question Five

• What measures has your company implemented for
  future audit programs that will help minimize the
  perceived negative impact from business owners?

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Question Six

• What do you envision is the best way to move
  forward under the new law and do you think the
  moratorium will be lifted or a permanent ban will
  be imposed?

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Question Seven

• How can NCDOR and the counties assist your
  company in the future in refining your auditing
  program to comply with the new law?

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What do you think??

• Questions or comments?