Bill Summary for S 538 (2013-2014)

Summary date: 

Jul 17 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 538 (Public) Filed Thursday, March 28, 2013
A BILL TO BE ENTITLED AN ACT TO GRANT A TAXPAYER'S REQUEST FOR A REFUND OR TO REMOVE A PROPOSED ASSESSMENT BY OPERATION OF LAW IF THE DEPARTMENT OF REVENUE HAS NOT ISSUED A FINAL DETERMINATION WITHIN THE STATUTORY TIME FRAME.
Intro. by Clodfelter, Tucker.

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Bill summary

Senate committee substitute to the 1st edition makes the following changes.

Amends GS 105-241.11 to require a taxpayer's request for review of a proposed denial of a refund or a proposed assessment to include a detailed explanation setting out the specific grounds of the request. Provides that inability to pay an assessment is not a sufficient basis for requesting review. Requests are automatically denied if the taxpayer fails to comply with these requirements. Provides that when there is an automatic denial, the Department of Revenue (Department) does not have to schedule a conference with the taxpayer and must send the taxpayer notice that the denial is final and not subject to further review. Requires the notice, in the case of an automatic denial of a request for review of a proposed assessment, to include a statement that the assessment is collectible under GS 105-241.22.

Amends GS 105-241.13(a)(3) to allow the Department to make multiple requests for information from a taxpayer concerning a request for a departmental review of a proposed denial of a refund or a proposed assessment. Requires all requests to be made 60 days before the final determination must be issued.

Amends GS 105-241.14 to add that the Secretary and taxpayer may mutually agree to reduce the nine-month period for a final determination on a proposed denial of a refund or proposed assessment. Amends the circumstances that negate the consequences of inaction by the Department as follows: (1) amends a proposed circumstance to also include that the Department made a written request for additional information and the taxpayer has not responded in a complete manner as determined by the Secretary; (2) provide in a proposed circumstance that if the time limit set for the review will expire within 60 days of receipt of the requested information from the taxpayer, the Department must review the information and either grant the refund, remove the proposed assessment, or issue a final determination within 90 days of receipt of the requested information; and (3) add a circumstance where the Department received a request for review based on a proposed denial of refund, and the denied refund is based on a specified contingent event that has not been finalized.

Changes the effective date of the act to January 1, 2014 (was, when the act becomes law).

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