North Carolina § 105-159 - Federal determinations and amended returns.

§ 105-159. Federal determinations and amended returns.

Federal Determination. - If a taxpayer's adjusted gross income, filing status, personal exemptions, standard deduction, itemized deductions, or federal tax credit are changed or corrected by the Commissioner of Internal Revenue or an agreement of the U.S. competent authority, and the change or correction affects the amount of State tax payable, the taxpayer must file an income tax return reflecting each change or correction from a federal determination within six months after being notified of each change or correction. The Secretary must propose an assessment for any additional tax due from the taxpayer as provided in Article 9 of this Chapter. The Secretary must refund any overpayment of tax as provided in Article 9 of this Chapter. A federal determination has the same meaning as defined in G.S. 105-228.90. Amended Return. - The following applies to an amended return filed by a taxpayer with the Commissioner of Internal Revenue: If the amended return contains an adjustment that would increase the amount of State tax payable under this Part, then notwithstanding the provisions of G.S. 105-241.8(a), the taxpayer must file within six months thereafter an amended return with the Secretary. If the amended return contains an adjustment that would decrease the amount of State tax payable under this Part, the taxpayer may file an amended return with the Secretary within the provisions of G.S. 105-241.6. Penalties. - A taxpayer that fails to comply with this section is subject to the penalties in G.S. 105-236 and forfeits the right to any refund due by reason of the determination. History (1939, c. 158, s. 334; 1947, c. 501, s. 4; 1949, c. 392, s. 3; 1957, c. 1340, s. 14; 1963, c. 1169, s. 2; 1967, c. 1110, s. 3; 1973, c. 476, s. 193; 1989, c. 728, s. 1.31; 1993 (Reg. Sess., 1994), c. 582, s. 1; 2006-18, s. 5; 2007-491, s. 16; 2013-414, s. 38; 2017-39, s. 4(b); 2018-5, s. 38.3(b); 2019-169, s. 6.3(c).) Editor's Note. - Session Laws 2007-491, s. 47 provides: "G.S. 105-241.10, as enacted by Section 1 of this act, and Sections 6, 15, 16, 17, and 22 are effective for taxable years beginning on or after January 1, 2007. Section 14 is effective for taxable years beginning on or after January 1, 2008. Sections 45, 46, and 47 are effective when they become law. The remainder of this act becomes effective January 1, 2008. The procedures for review of disputed tax matters enacted by this act apply to assessments of tax that are not final as of the effective date of this act and to claims for refund pending on or filed on or after the effective date of this act. This act does not affect matters for which a petition for review was filed with the Tax Review Board under G.S. 105-241.2 [repealed] before the effective date of this act. The repeal of G.S. 105-122(c) and G.S. 105-130.4(t) and Sections 11 and 12 apply to requests for alternative apportionment formulas filed on or after the effective date of this act. A petition filed with the Tax Review Board for an apportionment formula before the effective date of this act is considered a request under G.S. 105-122(c1) or G.S. 105-130.4(t1) , as appropriate." Session Laws 2018-5, s. 38.3(h), made the rewriting of this section by Session Laws 2018-5, s. 38.3(b), effective June 12, 2018, and applicable to federal amended returns filed on or after that date. Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2019-169, s. 6.3(d), made the amendment to subsection (a) by Session Laws 2019-169, s. 6.3(c), effective July 26, 2019, and applicable to a federal determination on or after that date. Effect of Amendments. - Session Laws 2006-18, s. 5, effective July 1, 2006, and applicable to federal determinations made on or after that date, substituted "six months" for "two years" in the first sentence of the first undesignated paragraph. Session Laws 2007-491, s. 16, effective for taxable years beginning on or after January 1, 2007, rewrote the second and third sentences of the former first paragraph; and substituted "Secretary must either refund" for "Secretary shall either refund" in the present third sentence. For applicability, see Editor's note Session Laws 2013-414, s. 38, effective August 23, 2013, in the first sentence, substituted "If a taxpayer's adjusted gross income or federal tax credit that affects the amount of State tax payable" for "If a taxpayer's federal taxable income" at the beginning, and substituted "adjusted gross income or federal tax credit that affects the amount of State tax payable" for "taxable income" at the end. Session Laws 2017-39, s. 4(b), effective June 21, 2017, inserted "filing status, personal exemptions, standard deduction, itemized deductions" in the first sentence. Session Laws 2018-5, s. 38.3(b), rewrote the section. For effective date and applicability, see editor's note. Session Laws 2019-169, s. 6.3(c), deleted "or other officer of the United States" following "Revenue", and inserted "an agreement of the U.S." in the first sentence in subsection (a). For effective date and applicability, see editor's note. Legal Periodicals. - For survey of 1982 law on taxation, see 61 N.C.L. Rev. 1217 (1983).