Audit says Hamilton District Volunteer Fire-EMS Department violated federal tax laws

RALEIGH — A state investigative audit of the Hamilton District Volunteer Fire-EMS Department shows a possible violation of federal tax laws. The department is located in Martin County. 

Among the audit’s findings was an unreported $52,670 in compensation paid to individuals for services performed from 2017 to 2021 by Hamilton Fire-EMS.  

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“During these five years, Hamilton Fire-EMS paid $52,670 to seven individuals for services they performed,” the audit reports. “The services included firefighting and emergency medical response. These compensation payments should have been reported to the individuals on Form 1099.”  

The audit also says that “Hamilton Fire-EMS did not provide the annual Form 1099 to these seven individuals for the compensation they received for their services, nor did they report the compensation to the IRS.”  

The audit recommends Hamilton Fire-EMS should provide individuals with the appropriate annual Form 1099 for years 2017-2021, the department should submit all unfiled forms to the IRS for those years, and the Hamilton Fire-EMS Board should implement procedures to ensure the proper forms are issued annually to individuals providing services and who receive compensation greater than $600 in a calendar year.   

“All three recommendations for corrective measures offered by the state auditor’s office will be implemented,” Hamilton District Volunteer Fire-EMS said in its response. “Completion of two of the three recommendations are contingent on the receipt of certain Social Security numbers.” 

About A.P. Dillon 1337 Articles
A.P. Dillon is a North State Journal reporter located near Raleigh, North Carolina. Find her on Twitter: @APDillon_