21 NCAC 08N .0208         REPORTING CONVICTIONS, JUDGMENTS, AND DISCIPLINARY ACTIONS

(a)  Criminal Actions. A CPA shall notify the Board within 30 days of any conviction or finding of guilt of, pleading of nolo contendere, or receiving a prayer for judgment continued to any criminal offense.

(b)  Civil Actions. A CPA shall notify the Board within 30 days of any judgment or settlement in a civil suit, bankruptcy action, administrative proceeding, or binding arbitration that:

(1)           is grounded upon an allegation of professional negligence, gross negligence, dishonesty, fraud, misrepresentation, incompetence, or violation of any federal or state tax law and

(2)           was brought against either the CPA or a North Carolina office of a CPA firm of which the CPA was a managing owner.

(c)  Settlements. A CPA shall notify the Board within 30 days of any written settlement in which a client or former client releases the CPA from liability that is grounded upon an allegation of professional negligence; gross negligence; dishonesty; fraud; misrepresentation; incompetence; or violation of any federal, state, or local law, regardless of whether the client or former client has filed a civil suit or criminal charge.

(d)  Investigations. A CPA shall notify the Board within 30 days of any inquiry or investigation by the criminal investigation divisions of the Internal Revenue Service (IRS) or any state department of revenue pertaining to any personal or business tax matters.

(e)  Liens. A CPA shall notify the Board within 30 days of the filing of any liens by the Internal Revenue Service (IRS) or any state department of revenue regarding the failure to pay or apparent failure to pay for any amounts due for any tax matters.

History Note:        Authority G.S. 55B-12; 57D-2-02; 93-12(3); 93-12(9);

Eff. April 1, 1994;                                

Amended Eff. January 1, 2014; January 1, 2006; April 1, 2003; April 1, 1999;

Readopted Eff. February 1, 2016;

Amended Eff. May 1, 2017.