This initiative identifies taxpayers who have been notified by the IRS that they failed to report taxable income information on their federal individual income tax return, which affects the income reported on their North Carolina individual income tax return. North Carolina returns start with the amount of Adjusted Gross Income (AGI) reported on your federal return.
You should have already received a CP2000 notice from the IRS, and should have filed an amended North Carolina return that shows the adjustments listed on the IRS notice within six months of receiving that information from the IRS.
You are receiving an "Individual Income Tax Assessment" from the NC Department of Revenue because you did not file an amended state return.
more detailed explanation
What should I do now?
If you agree with the assessment, pay the total amount due. Payment options and instructions can be found on the previous page.
If you do not agree with the assessment:
- Provide information to show that our adjustment of your AGI is in error, please mail supporting documentation along with your notice to the Correspondence Unit, PO Box 1168, Raleigh, NC, 27602.
- If you have already filed an amended state individual income tax return that reflects your accurate AGI, check the designated area in the EXPLANATION section of your notice, attach a copy of the amended return, and mail the entire notice without payment to Correspondence Unit, PO Box 1168, Raleigh, NC 27602.
- Request that the department review the assessment as the first step in your appeals process. Your request for review must be received within 45 days of the date of the notice.
Action is required within 45 days of the date of the Notice of Individual Income Tax Assessment. This information is also found on your notice.