North Carolina: Sales Tax Handbook
How to appeal a sales tax audit or penalty in North Carolina
In North Carolina, the Department of Revenue will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the North Carolina Department of Revenue, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Revenue, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in North Carolina
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed North Carolina sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Revenue cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in North Carolina is three years from later of either the return due date or the return filing date.
Appealing to the Department of Revenue in North Carolina
If you do not agree with a penalty or decision made by the North Carolina Department of Revenue, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be completed with the Secretary of Revenue within 30 days after mailing or delivery of notice of proposed assessmentTop
Administrative Sales Tax Appeals in North Carolina
A notice of intent to file a petition must be filed with the Tax Review Board within thirty days after the final decision has been made.Top
Judicial Sales Tax Appeals in North Carolina
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the District Court within thirty days after receipt of decision
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