Tax News

CCH (cch.taxgroup.com) reports:

Legislation is enacted that dramatically revises the appeals process for resolving disputes of taxes administered by the North Carolina Department of Revenue (DOR), including corporation franchise and income taxes, personal income taxes, and sales and use taxes. The legislation, generally effective January 1, 2008, changes how taxpayers pursue tax refunds; revamps the procedures to protest refund denials, proposed assessments, vendor license revocations, and imposition of penalties; and revises and consolidates a variety of tax collection provisions. In addition, corporation franchise and income tax filing deadlines are changed, the failure to pay penalty is modified, and corporate officer liability for unpaid corporate sales and use, employer withholding, and motor fuel excise taxes is expanded.
Under the revised administrative provisions, the Tax Review Board will be abolished and taxpayers will be afforded an opportunity for an independent appeal before the North Carolina Office of Administrative Hearings prior to paying any proposed tax assessment or penalties. As a result of the abolition of the Tax Review Board, the manner in which taxpayers apply for use of an alternative apportionment method for corporate income tax purposes is revised, as is the procedure by which the DOR adopts regulations.