Notices and Updates

The form was updated to incorporate legislative changes enacted by the 2017 Session of the General Assembly. Generally, services to real property are retail sales of or the gross receipts derived from repair, maintenance, and installation services, unless a person substantiates that a transaction is subject to sales and use tax as a real property contract, a mixed transaction contract, or the transaction is not subject to sales and use tax.

The NCDOR has introduced a revised penalty policy that is effective for penalty waiver requests considered on or after March 1, 2018.

Read the policy
 

In the matter of the N. C. Department of Revenue v. First Petroleum Services, Inc., the NC Business Court (“Court”) reversed the Office of Administrative Hearings’ decision and remanded with instruction to enter partial summary judgment in favor of the Department.

The North Carolina Department of Revenue has published a notice on how the federal tax law changes in the Tax Cuts and Jobs Act passed in December and the Bipartisan Budget Act of 2018 passed in February will affect North Carolina individual income and corporate income tax returns.

Read the notice.

Form E-595E, Streamlined Sales and Use Tax Agreement Certificate of Exemption, is updated to reflect changes adopted as part of the Streamlined Sales and Use Project. The revision is applicable to transactions beginning Jan. 1, 2018. 

Read the notice about the updated form.

Review the updated form.

Read the updated notice.

Because some taxpayers have had questions regarding the Department’s filing requirements for Form NC-3 and certain 1099 informational returns, Secretary Ronald G. Penny has elected to automatically waive the failure to file penalty on NC-3 forms due to be filed by January 31, 2018, but which are filed after that date. As such, the Department will not impose the failure to file penalty on NC-3 forms due to be filed on January 31, 2018 if the return is not timely filed.

Read the Private Letter Ruling

Read the Private Letter Ruling

Read the Private Letter Ruling