Thousands Receive N.C. Revenue Notices That Look Like Bills

[FEDUKE404]

For your information and/or entertainment:

http://www.carolinajournal.com/exclusives/display_exclusive.html?id=9856

Excerpt:
Rowell questions why he should have to go to such great lengths to respond when he wasn’t required to file a return.
Included: Attach an explanation of why the recipient isn’t required to file a return to a copy of the notice and return it to the Department of Revenue.


Several years ago I had a client in a similar situation. The NCDOR had "read" the federal/IRS info and then sent a "notice" for >$10k in NC taxes due for unreported income. The income was from NC sourced retirement that was, and had been, fully reported for years on the client's VA (full-time resident) return. Phone calls to "person" at NCDOR always resulted in voice mail, letters went unanswered, and and eventually it took a call "to the top" of NCDOR to get things resolved.

I guess NCDOR is getting (more) desperate for funds.

FE

[ChEAr$]

Alabama also has exemptions for various pension incomes, and since they are excluded, they never are included in AGI. I've often wondered just why AL doesn't follow up when matching with federal figures like NC does. Keep my fingers crossed.

[FEDUKE404]

NC has no dog in the hunt

Alabama also has exemptions for various pension incomes, and since they are excluded, they never are included in AGI. I've often wondered just why AL doesn't follow up when matching with federal figures like NC does. Keep my fingers crossed.

Not quite the same issue.

While NC excludes from taxation certain retirement income ("regular" retirees, "government" retirees, and "government before mid-80s" retirees) the mechanism is to start with federal AGI and then remove whatever portion could then be excluded per the above categories. (I am not familiar with the approach AL takes to such.)

I have several NC clients who effectively pay NO state income tax due to these "deductions from income." However, they still have to file a tax return each year showing the allowable reduction in taxable income. You might call it "proving your innocence."

The article I posted above is not the same issue. It is referring to people who have no (by statute or otherwise) NC sourced income. They are under no burden to report/exclude/etc anything via the NCDOR, and should not be bothered by nuisance letters from the NCDOR. Especially when they then have to take the time, or pay their tax person, to respond to the inept notice.

I hope this post clarifies the issue.

FE