North Carolina IRS Representation Attorney
Even the best formulated and executed 501(c)(3) organizations sometimes find themselves in the position of requiring representation before the Internal Revenue Service (IRS). Should this happen to a non-profit organization you are affiliated with, our law firm, Carolina Estate Planning, is here to help. Attorney Jeff Bloomfield is well-informed on non-profit law and regulations and is eager to use his knowledge to provide non-profits organizations with top-tier representation in IRS disputes.
We believe the best way to prevent IRS audits, investigations, and proceedings is by being proactive and conducting independent audits. For some North Carolina non-profits, it is a requirement. An independent audit examines the internal financial records, accounting practices, transactions, and controls. The auditor, generally a Certified Public Accountant (CPA) checks to see if the organization complies with generally accepted accounting principles (GAAP) which are created by the Financial Accounting Standards Board (FASB).
North Carolina Independent Audit Requirement
The state of North Carolina does require audits when the non-profit meets certain qualifications. If it receives over $500,000 per year in funds from the state, it must submit a CPA conducted audit known as a “yellow book.” State auditors are also allowed to request that an independent audit be conducted under certain circumstances.
Not every non-profit is required to conduct an independent audit. It depends largely on the budget size, funding sources, and state law. If an organization receives federal funding, it will likely require an independent audit.
Benefits of Independent Audits
Even if an independent audit is not required for your non-profit under federal or state law it can still be a good idea to have one conducted. Benefits include:
- As a demonstration of financial transparency
- To encourage potential donors
- It may be required by a foundation that is considering donating
- It can improve your organizations score with charity watchdog groups
- Peace of mind for board members
- Boosts the non-profit’s reputation and perceived level of professionalism
Disadvantages of Independent Audits
An independent audit can be a significant financial investment. If it is not required by law, it is crucial that a cost-benefit analysis be conducted to determine the feasibility of having the audit performed. For smaller non-profits, the cost of the audit may even exceed the funding that would be received by the foundation requiring the audit. In these cases, there may be other ways to prove financial stability and transparency.
Let Jeff Bloomfield Represent Your 501(c)(3) Organization
My name is Jeff Bloomfield and I am an attorney at Carolina Estate Planning. Laws and regulations involving non-profit organizations can be complex and intimidating to attorneys not experienced in their interpretation and application. I have the knowledge, experience, and skill that enables board members and directors to have peace of mind that their organization is in good hands. I pride myself on providing non-profit organizations with stellar representation in audits, investigations, and proceedings before the IRS. You are able to contact me at 336-221-4457 or via my contact page. I look forward to hearing from you!