§ 1400.502 Compliance and enforcement.

(a) To comply with the average adjusted gross income limitation, for program year 2025 and prior years, a person or legal entity, including all interest holders in a legal entity, general partnership, or joint venture, and for program year 2026 and subsequent years, a person or legal entity other than a qualified pass-through entity, including all interest holders in a legal entity and qualified pass-through entity must provide annually the following as required by CCC: (1) A certification in the manner prescribed by CCC from a certified public accountant or attorney that the average adjusted gross income of the person or legal entity does not exceed the applicable limitation; (2) A certification from the person or legal entity that the average adjusted gross income of the person or legal entity does not exceed the applicable adjusted gross income limitations; (3) The relevant Internal Revenue Service documents and supporting financial data as requested by CCC. Supporting financial data may include State income tax returns, financial statements, balance sheets, reports prepared for or provided to another Government agency, information prepared for a private lender, and other credible information relating to the amount and source of the person's or legal entity's income; (4) Authorization for CCC to obtain tax data from the Internal Revenue Service for purposes of verification of compliance with this subpart. (b)(1) All persons and legal entities are subject to an audit by FSA of any information submitted in accordance with this subpart. As a part of this audit, income tax returns may be requested, and if requested, must be supplied by all related persons and legal entities. (2) In addition to any other requirement under any Federal statute, relevant Federal income tax returns and documentation must be retained a minimum of two years after the end of the calendar year corresponding to the year for which payments or benefits are requested. (c) Failure to comply with this subpart's requirements, will result in ineligibility for all program benefits subject to this subpart for the year or years subject to the request.