Notices and Updates

NCDOR Publishes Notices About IRS Changes

The federal Tax Cuts and Jobs Act (Public Law 115-97) enacted in December 2017 and the Bipartisan Budget Act of 2018 (Public Law 115-123) enacted in February 2018 made changes to the Internal Revenue Code.  As a result, the NCDOR has published two notices that clarify state laws with regard to the federal provisions and provide guidance on how the federal provisions affect state income tax returns.

Read the notice about IRC Section 965 Repatriation Guidance.

NCDOR Publishes Directive on Online Sales Taxes

The North Carolina Department of Revenue has published a directive about online sales taxes. The directive was issued following the recent U.S. Supreme Court decision in South Dakota v. Wayfair in which the court found that physical presence is not necessary to create a substantial nexus between a remote seller and a taxing state.

Read the directive.

NCDOR Accepting Public Comments on Existing Rule Review Initial Classification Report for License and Excise Tax Division

The North Carolina Department of Revenue is accepting public comment on G.S. 150B-21.3A Report for 17 NCAC, Chapter 04, License and Excise Tax Division.

More information and the report is accessible here.

The public comment period concerning the Department's initial classifications of these rules begins on June 11, 2018 and ends at 5:00 p.m. on August 17, 2018.

Public comments shall be in writing and shall be directed to:

NCDOR Publishes Four New Sales Tax Directives to Communicate Changes of the Interpretation in Taxability

The NCDOR recently published four new sales and use tax directives to communicate changes of the interpretation in the taxability of the following:

SD 18-2, published May 21, addresses the application of sales and use tax concerning the effective date of a tax change applicable to billings for the lease or rental of tangible personal property or digital property provided and billed on a monthly or other periodic basis.

NCDOR Publishes Directive on Repair, Maintenance and Installation Services to Real Property and Real Property Contracts

The NCDOR has published a directive regarding repair, maintenance and installation services to real property and real property contracts. The directive addresses a number of issues concerning the application of sales and use taxes for services to real property. The issues addressed are based on recent law changes and inquiries or suggestions received by the department.

Read the directive.

Written Determination Published on Car Wash Services

A written determination applies the tax law to a specific set of existing facts furnished by a particular taxpayer. A written determination is applicable only to the individual taxpayer addressed and as such has no precedential value except to the taxpayer to whom the determination is issued.

Read the determination.