North Carolina § 105-228 - 90. Scope and definitions.

§ 105-228. 90. Scope and definitions.

Scope. - This Article applies to all of the following: Subchapters I, V, and VIII of this Chapter. The annual report filing requirements of G.S. 55-16-22. The primary forest product assessment levied under Article 81 of Chapter 106 of the General Statutes. The inspection taxes levied under Article 3 of Chapter 119 of the General Statutes. Chapter 105A of the General Statutes. Definitions. - The following definitions apply in this Article: CARES Act. - The Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136, March 27, 2020, 134 Stat. 359. The taxpayer has received audit findings from the Internal Revenue Service for the tax period and the taxpayer does not timely file an administrative appeal with the Internal Revenue Service. The taxpayer consented to any of the audit findings for the tax period through a form or other written agreement with the Internal Revenue Service. (3) Charter school. - A nonprofit corporation that has a charter under G.S. 115C-218.5 to operate a charter school. (5) City. - A city as defined by G.S. 160A-1(2) . The term also includes an urban service district defined by the governing board of a consolidated city-county, as defined by G.S. 160B-2(1) . (7) Code. - The Internal Revenue Code as enacted as of May 1, 2020, including any provisions enacted as of that date that become effective either before or after that date. (9) County. - Any one of the counties listed in G.S. 153A-10 . The term also includes a consolidated city-county as defined by G.S. 160B-2(1) . (11) Department. - The Department of Revenue. (13) Electronic Funds Transfer. - A transfer of funds initiated by using an electronic terminal, a telephone, a computer, or magnetic tape to instruct or authorize a financial institution or its agent to credit or debit an account. (15) Federal determination. - A change or correction arising from an audit by the Commissioner of Internal Revenue or an agreement of the U.S. competent authority, and the change or correction has become final. A federal determination is final when the determination is not subject to administrative or judicial review. Additionally, audit findings made by the Internal Revenue Service are deemed final in the following circumstances: (17) Income tax return preparer. - Any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by Article 4 of this Chapter or any claim for refund of tax imposed by Article 4 of this Chapter. For purposes of this definition, the completion of a substantial portion of a return or claim for refund is treated as the preparation of the return or claim for refund. The term does not include a person merely because the person (i) furnishes typing, reproducing, or other mechanical assistance, (ii) prepares a return or claim for refund of the employer, or an officer or employee of the employer, by whom the person is regularly and continuously employed, (iii) prepares as a fiduciary a return or claim for refund for any person, or (iv) represents a taxpayer in a hearing regarding a proposed assessment. (19) NAICS. - The North American Industry Classification System adopted by the United States Office of Management and Budget as of December 31, 2007. (21) Pass-through entity. - An entity or business, including a limited partnership, a general partnership, a joint venture, a Subchapter S Corporation, or a limited liability company, all of which is treated as owned by individuals or other entities under the federal tax laws, in which the owners report their share of the income, losses, and credits from the entity or business on their income tax returns filed with this State. For the purpose of this section, an owner of a pass-through entity is an individual or entity who is treated as an owner under the federal tax laws. (23) Person. - An individual, a fiduciary, a firm, an association, a partnership, a limited liability company, a corporation, a unit of government, or another group acting as a unit. The term includes an officer or employee of a corporation, a member, a manager, or an employee of a limited liability company, and a member or employee of a partnership who, as officer, employee, member, or manager, is under a duty to perform an act in meeting the requirements of Subchapter I, V, or VIII of this Chapter, of G.S. 55-16-22 , of Article 81 of Chapter 106 of the General Statutes, or of Article 3 of Chapter 119 of the General Statutes. (25) Secretary. - The Secretary of Revenue. (27) Tax. - A tax levied under Subchapter I, V, or VIII of this Chapter, the primary forest product assessment levied under Article 81 of Chapter 106 of the General Statutes, or an inspection tax levied under Article 3 of Chapter 119 of the General Statutes. Unless the context clearly requires otherwise, the term "tax" includes penalties and interest as well as the principal amount. (29) Taxpayer. - A person subject to the tax or reporting requirements of Subchapter I, V, or VIII of this Chapter, of Article 81 of Chapter 106 of the General Statutes, or of Article 3 of Chapter 119 of the General Statutes. (31) Taxpayer Identification Number (TIN). - An identification number issued by the Social Security Administration or the Internal Revenue Service, excluding a Taxpayer Identification Number for Pending U.S. Adoptions (ATIN) and Preparer Taxpayer Identification Number (PTIN). (33) Truncated Taxpayer Identification Number (TTIN). - This term has the same meaning as defined in Treasury Regulation section 301.6109-4. History (1991 (Reg. Sess., 1992), c. 930, s. 13; 1993, c. 12, s. 1; c. 354, s. 18; c. 450, s. 1; 1993 (Reg. Sess., 1994), c. 662, s. 1; c. 745, s. 13; 1995, c. 17, s. 9; c. 461, s. 14; 1995 (Reg. Sess., 1996), c. 664, s. 1; 1997-55, s. 1; 1997-475, s. 6.9; 1998-171, s. 1; 1999-415, s. 1; 2000-72, s. 1; 2000-126, s. 1; 2000-140, s. 69; 2001-414, s. 23; 2001-427, s. 4(a); 2002-106, s. 1; 2002-126, s. 30C.1(a); 2003-25, s. 1; 2003-284, s. 37A.1; 2003-416, s. 4(d); 2004-110, s. 1.1; 2005-276, ss. 35.1(a), (d); 2006-18, s. 1; 2007-323, s. 31.1(a); 2007-491, s. 25; 2008-107, s. 28.1(a); 2009-451, s. 27A.6(a), (b); 2010-31, s. 31.1(a); 2011-5, s. 1; 2011-145, s. 13.25(xx); 2011-330, ss. 11, 31(a), 37; 2012-79, s. 1.7(a); 2013-10, s. 1; 2014-3, s. 14.16(a); 2014-101, s. 7; 2015-2, s. 1.1; 2016-6, s. 1; 2017-39, s. 1; 2018-5, ss. 38.1(a), 38.3(g); 2019-6, s. 1.1; 2019-169, s. 6.3(a); 2020-58, ss. 1(a), 4.4(a).) Editor's Note. - Session Laws 2011-145, s. 13.25(xx), provides: "The Revisor of Statutes shall make the conforming statutory changes necessary to reflect the transfers under this section. The Revisor of Statutes may correct any reference in the General Statutes to the statutes that are recodified by this section and make any other conforming changes necessitated by this section." Pursuant to that provision, conforming changes have been made in subsection (a) and subdivisions (b)(5), (b)(7), and (b)(8). "Article 81 of Chapter 106 " was substituted for "Article 12 of Chapter 113A ." Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'" Session Laws 2011-145, s. 32.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011-2013 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011-2013 fiscal biennium." Session Laws 2011-145, s. 32.5 is a severability clause. Session Laws 2016-6, s. 6, provides, in part: "Notwithstanding Section 1 of this act, any amendments to the Internal Revenue Code enacted after January 1, 2015, that increase North Carolina taxable income for the 2015 taxable year are effective for taxable years beginning on or after January 1, 2016." For prior similar provisions, see Session Laws 2015-2, s. 1.4, 2014-3, s. 14.16(b), 2013-10, s. 11, 2012-79, s. 1.7(b), 2011-5, s. 4, as amended by 2011-330, s. 11, 2010-31, s. 31.1(c), 2009-451, s. 27A.6(g); 2008-107, s. 28.1(b); 2007-323, s. 31.1(b); 2006-18, s. 2; 2005-276, s. 35.1(c); 2004-110, s. 1.2; 2003-25, s. 2; 2002-126, s. 30C.1(b), 2001-427, s. 4(c), 2000-126, s. 7, 1998-171, s. 5, and 1997-55, s. 2. Session Laws 2016-23, s. 2(a), provides: "Taxes. - The following provisions apply to taxes affected by boundary certification: "(1) Neither the State nor a subdivision of the State may assess a tax on a person for activities occurring prior to the date of certification where the basis of the assessment is the certification. "(2) The State and its subdivisions may assess a tax for activities occurring on or after the date of certification subject to the following conditions: "a. For taxes imposed for a taxable period, the tax may not be imposed for a period beginning prior to the date of certification. "b. For sales and use taxes for an item that is provided and billed on a monthly or other periodic basis, the tax may not be assessed for periods beginning prior to the date of certification. "c. For a person subject to taxes levied under Article 2A of Chapter 105 of the General Statutes who, on the date of the certification, has on hand any tobacco products, the person must file a complete inventory of the tobacco products within 20 days after date of certification and must pay an additional tax to the Secretary of Revenue when filing the inventory. The amount of the tax due is the amount due based on the current tax rate less any tax paid on the inventory to another state. "d. For installments and carryforwards of tax benefits allowed by this State at the time of boundary certification for activities with a situs in South Carolina, a person may claim remaining installments and carryforwards against State tax liability. "e. For land that is classified under G.S. 105-277.3 at the time of boundary certification and that fails to meet the size requirements of G.S. 105-277.3 solely because of boundary certification, (i) no deferred taxes are due as a result of boundary certification, (ii) the deferred taxes remain a lien on the land located in this State, and (iii) the deferred taxes for the land in this State are otherwise payable in accordance with G.S. 105-277.3. The tax benefit provided in this sub-subdivision is forfeited if any portion of the land located in this State is sold. "f. For land receiving a property tax benefit other than classification under G.S. 105-277.3 at the time of boundary certification that fails to meet the requirements for the property tax benefit solely because of boundary certification, the land is not entitled to receive the property tax benefit after the time of boundary certification unless it meets the statutory requirements, but the lien on the land for the deferred taxes is extinguished as if it has been paid in full. "(3) A person may not seek a refund for activities occurring prior to the date of certification where the basis of the refund is the certification." Session Laws 2016-23, s. 12(a) is a severability clause. Session Laws 2016-76, s. 2(c), provides: "Notwithstanding Article 9 of Chapter 105 of the General Statutes, a taxpayer may contest a determination issued prior to the enactment of this section that an amended return or claim for refund was filed outside the statute of limitations if both of the following conditions are met: "(1) The Department of Revenue determined that the amended return or claim for refund was filed outside the statute of limitations. "(2) The taxpayer contests the statute of limitations determination in accordance with G.S. 105-241.15(b) , as enacted by this act, within 60 days of the enactment of this act. For purposes of this section, a determination by the Department that an amended return or claim for refund was filed outside the statute of limitations is considered to be a notice of denial issued by the Department for purposes of G.S. 105-241.15(b) ." Session Laws 2018-5, s. 38.3(h), made subdivision (b)(3a) of this section, as added by Session Laws 2018-5, s. 38.3(g), 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 amendments to subdivision (b)(3a) by Session Laws 2019-169, s. 6.3(a), effective July 26, 2019, and applicable to a federal determination on or after that date. Session Laws 2020-58, s. 1(b), provides: "The Revisor of Statutes is authorized to renumber the subdivisions of G.S. 105-228.90(b) to ensure that the subdivisions are listed in alphabetical order and in a manner that reduces the current use of alphanumeric designations, to make conforming changes, and to reserve sufficient space to accommodate future additions to the statutory subsection." Pursuant to this authority, the subdivisions in this section have been renumbered to maintain numeric order and so that the definitions remain in alphabetical order, to eliminate alphanumeric designations, and to reserve sufficient space for future subdivisions. Effect of Amendments. - Session Laws 2002-106, s. 1, effective December 1, 2002, and applicable to actions that are committed on or after that date, added subdivision (b)(4), which had formerly been reserved. Session Laws 2003-25, s. 1, effective April 24, 2003, substituted "January 1, 2003" for "May 1, 2002" in subdivision (b)(1b). Session Laws 2003-284. s. 37A.1, effective June 30, 2003, substituted "June 1, 2003" for "January 1, 2003" in subdivision (b)(1b). Session Laws 2003-416, s. 4(d), effective August 14, 2003, inserted subdivision (b)(4d). Session Laws 2004-110, s. 1, effective July 17, 2004, substituted "May 1, 2004" for "June 1, 2003" in subdivision (b)(1b). Session Laws 2005-276, s. 35.1(a), effective August 13, 2005, in subdivision (b)(1b), substituted "January 1, 2005" for "May 1, 2004," and added "but not including the amendments made to section 164 of the Code by section 501 of P.L. 108-537." Session Laws 2005-276, s. 35.1(d), effective for taxable years beginning on or after January 1, in subdivision (b)(1b), deleted "but not including the amendments made to section 164 of the Code by section 501 of P.L. 108-537," as added by s. 35.1(a). Session Laws 2006-18, s. 1, effective June 21, 2006, substituted "2006" for "2005" in subdivision (b)(1b). Session Laws 2007-323, s. 31.1(a), effective July 1, 2007, substituted "January 1, 2007," for "January 1, 2006," in subdivision (b)(1b). Session Laws 2007-491, s. 25, effective January 1, 2008, substituted "the term 'tax' includes" for "the terms 'tax' and 'additional tax' includes" in subdivision (b)(7). For applicability, see Editor's note. Session Laws 2008-107, s. 28.1(a), effective July 16, 2008, substituted "May 1, 2008" for "January 1, 2007" in subdivision (b)(1b). Session Laws 2009-451, s. 27A.6(a), effective for taxable years beginning on or after January 1, 2008, in subdivision (b)(1b), substituted "May 1, 2009" for "May 1, 2008" near the beginning, and added "but not including the amendments made to section 63(c) of the Code by section 3012 of P.L. 110-289" at the end. Session Laws 2009-451, s. 27A.6(b), effective for taxable years beginning on or after January 1, 2009, deleted "but not including the amendments made to Section 63(c) of the Code by section 3012 of P.L. 110-289" at the end of subdivision (b)(1b). Session Laws 2010-31, s. 31.1(a), effective June 30, 2010, in subdivision (b)(1b), substituted "May 1, 2010" for "May 1, 2009" and made a minor grammatical change. Session Laws 2011-5, s. 1, as amended by Session Laws 2011-390, s. 11, effective March 17, 2011, and applicable to the estates of decedents dying on or after January 1, 2011, substituted "January 1, 2011" for "May 1, 2010" in subdivision (b)(1b). Session Laws 2011-330, ss. 31(a) and (37), effective June 27, 2011, subdivided former subsection (a); added "all of the following" in the introductory language; added the subdivision (a)(1) through (a)(4) designations; and added subdivisions (a)(5) and (b)(4b). Session Laws 2012-79, s. 1.7(a), effective June 26, 2012, substituted "January 1, 2012" for "January 1, 2011" in subdivision (b)(1b). For additional effective date information, see editor's note. Session Laws 2013-10, s. 1, substituted "January 2, 2013" for "January 1, 2012" in subdivision (b)(1b). For effective date and applicability, see editor's note. Session Laws 2014-3, s. 14.16(a), substituted "December 31, 2013" for "January 1, 2013" in subdivision (b)(1b). For effective date, see Editor's note. Session Laws 2014-101, s. 7, effective August 6, 2014, substituted "G.S. 115C-218.5" for "G.S. 115C-238.29D" in subdivision (b)(1). See Editor's note for applicability. Session Laws 2015-2, s. 1.1, effective March 31, 2015, substituted "January 1, 2015" for "December 31, 2013" in subdivision (b)(1b). Session Laws 2016-6, s. 1, effective June 1, 2016, substituted "January 1, 2016" for "January 1, 2015" in subdivision (1b). Session Laws 2017-39, s. 1, effective June 21, 2017, substituted "January 1, 2017" for "January 1, 2016" in subdivision (b)(1b). Session Laws 2018-5, s. 38.1(a), effective June 12, 2018, substituted "February 9, 2018" for "January 1, 2017" in subdivision (b)(1b). Session Laws 2018-5, s. 38.3(g), added subdivision (b)(3a). For effective date and applicability, see editor's note. Session Laws 2019-6, s. 1.1, effective March 20, 2019, substituted "January 1, 2019" for "February 9, 2018" in subdivision (b)(1b). Session Laws 2019-169, s. 6.3(a), rewrote subdivision (b)(3a), which formerly read: "Federal determination. - A change or correction of the amount of a federal tax due arising from an audit by the Commissioner of Internal Revenue." For effective date and applicability, see editor's note. Session Laws 2020-58, ss. 1(a), 4.4(a), effective June 30, 2020, added the definition for "CARES Act" in subdivision (b)(1); substituted "May 1, 2020'' for "January 1, 2019'' in the definition for "Code" in subdivision (b)(7); and added definitions for "Taxpayer Identification Number (TIN)" and "Truncated Taxpayer Identification Number (TTIN)" in subdivisions (b)(31) and (b)(33), respectively. For renumbering of subdivisions, see editor's note for Session Laws 2020-58, s. 1(b).