TO REQUIRE THE SECRETARY OF REVENUE'S INTERPRETATION OF THE LAW CONCERNING THE SECRETARY'S AUTHORITY TO ADJUST NET INCOME OR REQUIRE A COMBINED RETURN BE MADE THROUGH RULE MAKING AND TO PROVIDE AN EXPEDITED PROCESS FOR RULE MAKING ON THIS ISSUE.
Enacts new GS 105-262A to provide an expedited procedure for the adoption of rules administering GS 105-130.5A, which authorizes the Secretary of Revenue (Secretary) to adjust the net income or require a combined return from a corporation that fails to accurately report state net income. States that the Secretary may not, except for a voluntary redetermination, redetermine state net income until the Secretary adopts a rule under this proposed statute. Directs the Secretary to prepare a fiscal note for a proposed new rule or a proposed change to a rule that has a substantial economic impact (at least $500,000 in a 12-month period), and sets out a procedure to publish and allow written comment on the fiscal note. Allows the Secretary to adopt a rule through the procedure in GS 150B-21.1(a3) (procedure for adopting a temporary rule), and requires electronic notification to persons on the mailing list and interested parties. Makes the rule subject to review, according to the detailed procedure in the statute, if any person objects and requests review by 5:00 p.m. on the third day after notification. Limits the matters that the Rules Review Commission may consider. Specifies that rules adopted under this statute become effective on the last day of the month the Codifier of Rules enters the rule in the NC Administrative Code. Makes conforming changes to GS 105-262 and GS 150B-1(d)(4).
Provides that the Secretary is not required to prepare a fiscal note for a proposed new rule submitted before December 31, 2012. Allows a taxpayer to rely on the interpretation of GS 105-130.5A in the Department of Revenue’s April 17, 2012 Directive for the 2012 tax year. Permits the Secretary to issue a proposed denial of a refund or proposed assessment under GS 105-130.5A for any taxable year after January 1, 2012, after a rule adopted pursuant to GS 105-262A becomes effective.
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