It has come to the attention of the Commission that real estate agents sometimes fail to correctly report to closing attorneys either their own Taxpayer Identification Numbers, or the Taxpayer Identification Numbers of their clients. This is done in an effort to avoid paying federal income taxes on the sale of real estate. These incorrect numbers are then subsequently reported to the Internal Revenue Service by the attorney or an accountant. A broker who provides a closing attorney accountant or others with an incorrect Taxpayer Identification Number is making a misrepresentation in violation of North Carolina General Statutes Section 93A-6(a) (1) for which disciplinary action may be imposed by the Commission. The broker may also be in violation of N.C.G.S. 93A-6(a) (8), being unworthy or incompetent to act as a real estate broker or salesman, and 93A-6(a) (10), conduct which constitutes improper, fraudulent or dishonest dealing.
To avoid potential disciplinary action by the Commission, be sure to correctly report Taxpayer Identification Numbers!