County Council has approved Laurens County taking preventive measures to provide documentation in the case of an audit by the Internal Revenue Service. A unanimous vote at Tuesday evening’s Council meeting approved adoption of policies and procedures for tax advantage bond compliance.
Bond Council Theodore Dubose has recommended that council adopt preventive procedures prior to the issuance of the $3.7 million general obligation bond in December that are to raise funds to build the new county administrative office building at Hillcrest Square. According to Dubose, the IRS has increased its scrutiny of government issued bonds and such transactions are more likely to be audited.
The purpose of these policies and procedures is to ensure that the requirements of the federal and state laws necessary to preserve the advantages of the tax exempt bonds are continuously complied with for the required periods.
County Administrator Ernie Segars told council that by implementing the policies and carrying out the procedures as written, local governments will be able to respond to audits because any information requested would have been complied and available as a matter of course.
County Attorney Sandy Cruickshanks told council that he totally concurs with council.
“It is good looking ahead and in the event of an audit we will have this already in place, it will be a great step ahead, but I hope it will never have to be used,” said Cruickshanks.