Contested Tax Cases and Tax Hearing Decisions

The General Statutes provide taxpayers with the right to contest the actions of the Department of Revenue if they do not agree with a proposed assessment or a proposed denial of a refund. See Appeals Process for a summary of the request for review process. A taxpayer whose objections are not resolved through the Departmental review process may file a petition for a contested tax case hearing at the Office of Administrative Hearings. Prior to January 1, 2008, taxpayers’ appeals of proposed assessments or denials of refund were heard by the Department’s Hearings Officer in administrative tax hearings.

Pursuant to G.S. 105-256(a)(9), effective for cases pending as of January 1, 2008 and where a taxpayer files a petition for a contested tax cased with the Office of Administrative Hearings prior to January 1, 2012, the Department is required to publish final decisions in contested tax cases. Effective June 27, 2011, G.S. 105-256(a)(9) was amended to delete the requirement that a final decision of the Secretary in a contested tax case be redacted prior to publication. For cases where a petition is filed with the Office of Administrative Hearings on or after January 1, 2012, the decision of an administrative law judge is the final decision in a contested tax case.

The table below lists the docket number of a decision, the date of the decision, the tax type involved, and the issue. Decisions are separated into two sections: Contested Tax Cases and Administrative Tax Hearings. Within each section the decisions are listed by tax type. Click on the docket number to access that decision. Prior to January 1, 2008, the Department published the Secretary’s final decisions for administrative tax hearings.

The decisions found below represent the decision by the tribunals based on the law and facts for the periods at issue covered by the decisions. The decisions may not represent current tax laws or current interpretations of the Secretary of Revenue.

Contested Tax Cases

Administrative Tax Hearings

All Tax Review Board decisions can be found in The North Carolina Register.

Contested Tax Cases

Corporate Income and Franchise Tax

Docket Number Date Decided Issue

08 REV 2665*

*See below for earlier final agency decisions

 7/24/15

(1) Whether income from the disposition of United States bonds that Petitioner purchased at a market discount is deductible for purposes of North Carolina corporate income tax where market discount is the difference between the amount received by Petitioner upon the disposition of such investment, exclusive of any coupon interest, and the amount Petitioner actually paid for the bond ("Market Discount Income").
(2) Whether interest that accrued during the period beginning in July 2002 and ending on May 16, 2006 on the assessment of North Carolina corporate income tax on Petitioner’s 2001 Market Discount Income is properly assessed; and if so, should a recommendation be made that Respondent, in its discretion, consider reducing or waiving the accrued interest during this time period to prevent an unjust result based on the particular facts and circumstances of this case.
13 REV 18654 10/10/14 Whether Petitioner was engaged in business as a building or construction contractor and therefore entitled to utilize the single-factor apportionment methodology for excluded corporations set forth in N.C. Gen. Stat. § 105-130.4(r) to determine its North Carolina corporate income and franchise tax liability during the Period at Issue?

08 REV 2665*

* Second Amended Final Agency Decision on 07/24/15

 12/10/13

(1) Whether income from the disposition of United States bonds that Petitioner purchased at a market discount is deductible for purposes of North Carolina corporate income tax where market discount is the difference between the amount received by Petitioner upon the disposition of such investment, exclusive of any coupon interest, and the amount Petitioner actually paid for the bond.
(2) Whether interest that accrued during the period beginning in July 2002 and ending on May 16, 2006 on the assessment of North Carolina corporate income tax on Petitioner’s 2001 market discount income is properly assessed; and if so, should a recommendation be made that Respondent, in its discretion, consider reducing or waiving the accrued interest during this time period to prevent an unjust result based on the particular facts and circumstances of this case.
09 REV 5669 4/21/11 Was the capital gain that Petitioner recognized from the 2004 sale of its minority limited partnership interest in [LP 1] apportionable income or nonapportionable income under G.S. 105-130.4?

08 REV 2665*

* decision amended on 12/10/13

* Second Amended Final Agency Decision on 07/24/15

 1/22/10 (1) Whether income from the disposition of United States bonds that Petitioner purchased at a market discount is deductible for purposes of North Carolina corporate income tax where market discount is the difference between the amount received by Petitioner upon the disposition of such investment, exclusive of any coupon interest, and the amount Petitioner actually paid for the bond.
(2) Whether interest that accrued during the period beginning in July 2002 and ending on May 16, 2006 on the assessment of North Carolina corporate income tax on Petitioner’s 2001 market discount income is properly assessed.

 

Estate Tax

Docket Number Date Decided Issue
     

Gift Tax

Docket Number Date Decided Issue
11 REV 14832 7/17/13

I. Did Petitioners meet their burden of proving a change in their North Carolina domicile by showing: (1) an actual abandonment of the first domicile, coupled with an intention not to return to it; (2) the acquisition of a new domicile by actual residence at another place; and (3) the intent of making the newer residence a permanent home?

II. Did Petitioners meet their burden to show that the Department improperly imposed the large tax deficiency penalties?

III. Did the ALJ improperly abate interest on the assessments?

 

Individual Income Tax

Docket Number

Date Decided

Issue

11 REV 14832

7/17/13

I. Did Petitioners meet their burden of proving a change in their North Carolina domicile by showing: (1) an actual abandonment of the first domicile, coupled with an intention not to return to it; (2) the acquisition of a new domicile by actual residence at another place; and (3) the intent of making the newer residence a permanent home?

II. Did Petitioners meet their burden to show that the Department improperly imposed the large tax deficiency penalties?

III. Did the ALJ improperly abate interest on the assessments?

09 REV 05218

9/27/11

Whether Petitioner Harrison’s receipt of the $450,000.00 from the Company in the 2007 tax year constitutes taxable income under North Carolina law when the federal authorities seized the $450,000.00 which had been placed in Petitioner’s personal money market account in that same year prior to Petitioner signing a Settlement Agreement in March 2008 in which he consented to forfeit all but $10,000.00 of the funds in said account.

10 REV 3212

2/8/11

Whether Respondent correctly assessed Petitioners for additional individual income tax due for the year 2006, plus applicable interest, when Petitioners failed to file an application for the credit claimed on their 2006 individual income tax return under former N.C. Gen. Stat. § 105-163.011(b) by September 15, 2006 as required by former N.C. Gen. Stat. § 105-163.011(c).

09 REV 6570 – 09 REV 6573

12/15/10

(1)Whether the North Carolina Revenue Laws authorize individual shareholders of an S Corporation to claim deductions under N.C. Gen. Stat. § 105-134.6(b)(17) on their North Carolina individual tax returns for additional first year depreciation previously added back by a C Corporation on its C corporation income tax returns under N.C. Gen. Stat. § 105-130.5(a)(15).

(2)Whether the Notices of Final Determination issued to Petitioners on October 12, 2009 were issued in error.

10 REV 3634

10/19/10

Whether the taxpayer was a legal resident of North Carolina during tax years 2006, 2007, and 2008.

 

Motor Fuels Tax

 

Docket Number Date Decided Issue
     

 

Privilege and Excise Taxes

Docket Number Date Decided Issue
     

 

Sales and Use Tax

Docket Number Date Decided Issue

NC Superior Court 17 (Notice of Appeal) (3/22/18)

 

NC Business Court Case 17-CVS-1663

14 REV 09438

Corrective Order (1/15/16)

OAH Decision (12/22/15)

2/23/18

 

 Whether Petitioner's Government Contracts are retail sales or performance contracts?

10 REV 00826

*North Carolina Business Court, 15 CVS16292, order on Petition for Review of the Final Decision issued 11/09/15 reversing the Final Decision issued by the Administrative Law Judge.

11/9/15

 Whether Petitioner is authorized to claim a refund under N.C. Gen. Stat. § 105-164.13(15) when: (1) Petitioner contracts with a third-party bank (“the Bank”) to extend credit to its customers in the form of private label credit cards (“PLCC”); (2) the PLCC Card Accounts are owned by the Bank; (3) the Bank reimburses Petitioner for the purchase price plus the applicable sales tax on each PLCC transaction; (4) the Bank charges Petitioner a Reserve Fee for each PLCC transaction; (5) the Bank owns and manages the Reserve Fees Account; (6) the Bank debits the Reserve Fees Account for PLCC losses on Card Account balances deemed worthless by the Bank; and (7) the Bank not Petitioner charged off the PLCC worthless accounts for federal income tax purposes?

13 REV 18080
&
13 REV 18081*

*North Carolina Business Court, 14 CVS11139, order on Petition for Review of the Final Decision issued 8/20/15 reversing the Final Decision issued by the Administrative Law Judge.

7/2/14

 Whether Petitioners have satisfied their burden to demonstrate that supplies purchased from an out-of-state vendor, which were stored, used, or consumed in the State of North Carolina, should be exempt from use taxes pursuant to N.C. Gen. Stat. § 105-164.13(12)d., which authorizes an exemption for “durable medical supplies.”
12 REV 02218 2/11/13 Whether Petitioner, as manager or REFS, LLC ("REFS"), is a responsible person for the sales and use tax liabilities incurred by REFS for the periods from December 1, 2009, through January 31, 2010, and March 1, 2010, through March 31, 2010 ("Periods at Issue").
10 REV 04058 5/16/12 Whether Respondent substantially prejudiced Petitioner's rights, exceeded its authority or jurisdiction, acted erroneously, failed to use proper procedure, acted arbitrarily or capriciously, or failed to act as required by law or rule by issuing Notices of Assessment against Petitioner to hold Petitioner personally and individually liable under N.C. Gen. Stat. §105-242.2 for the sales and use taxes, and withholding taxes owed by Vin, Inc., a now defunct North Carolina corporation?
09 REV 05695 11/4/11 Whether Petitioner's purchase of Disputed Property to which title is transferred to the U.S. Government pursuant to the terms of contracts containing Federal Acquisition Regulations (FARs) title passage provisions is a sale for resale in the regular course of business which rebuts the presumptions that use tax is due and that the use tax assessment is correct.
09 REV 4211*

*NC Business Court, 11 CVS 2261, Order on Petition for Review of Final Decision issued 11/6/15 affirming the Agency’s Final Decision

 1/13/11

Whether a North Carolina retailer (Taxpayer), that contracts with third-party banks to extend credit to its customers in the form of private label credit cards (PLCCs), meets the statutory provisions of N.C. Gen. Stat. § 105-164.13(15) when:

  • the PLCC accounts are owned by the third-party banks,
  • the third-party banks paid Taxpayer for the purchase price of each PLCC transaction, including the requisite sales tax and any applicable service fee, without regard to whether the customer ultimately defaulted, and
  • worthless PLCC accounts were charged off for federal income tax purposes by the third-party banks.
09 REV 1582 8/10/10 Whether the still and video ultrasonic imagery purchased by consumers was tangible personal property subject to North Carolina sales tax.
08 REV 2880

* NC Court of Appeals, 219 N.C. App. 207, decision issued 2/21/12 affirming the reversal by the Wake County Superior Court Judge.

 2/23/10 Whether Petitioner is entitled to offset its use tax liability on parts and supplies purchased and used to fulfill its obligations under optional maintenance contracts with sales tax it erroneously collected from its customers as a percentage of the total amount charged for its optional maintenance contracts.
09 REV 4433 2/3/10 Whether a taxpayer is liable for North Carolina use taxes as a result of the out-of-state purchase of two sports vehicles.
08 REV 2563 1/14/10 (1) Whether Petitioner’s service charges are subject to sales tax under the definition of sales price in N.C. Gen. Stat. § 105-164.3(37)(a).
(2) Whether the exemption for tips under N.C. Gen. Stat. § 105-164.13A applies.
09 REV 0020 1/14/10 (1) Whether Petitioner’s sales of stone products, which it purchased, cut, and installed in its customers’ houses, were “retail sales” subject to sales tax.
(2) If so, did Petitioner meet the burden of overcoming the statutory presumption in favor of sales tax liability?
08 REV 2915

* NC Business Court, 09 CV 20861, Court Order issued 6/21/10 granting Petitioner’s motion for summary judgment and amended as ordered on 11/16/10.

 9/8/09 Whether Petitioner, [Taxpayer], can claim refunds of sales and use tax where another governmental entity, [NC County], issued the checks to the private construction companies who built four schools in [NC County].

 

Unauthorized Substance Tax

Docket Number Date Decided Issue

 

    

 

Withholding Tax

Docket Number Date Decided Issue
10 REV 04058 5/16/12 Whether Respondent substantially prejudiced Petitioner's rights, exceeded its authority or jurisdiction, acted erroneously, failed to use proper procedure, acted arbitrarily or capriciously, or failed to act as required by law or rule by issuing Notices of Assessment against Petitioner to hold Petitioner personally and individually liable under N.C. Gen. Stat. §105-242.2 for the sales and use taxes, and withholding taxes owed by Vin, Inc., a now defunct North Carolina corporation?
11 REV 02148 12/8/2011 Whether Aides who perform in-home care duties under the auspices of Petitioner are "employees" subject to North Carolina withholding taxes?

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Administrative Tax Hearings

Corporate Income and Franchise Tax

Docket Number Date Decided Issue

2007-28

9/14/07

1) Whether Taxpayer’s investment in (a limited liability company) ("LLC"), which is taxed as a partnership for federal income tax purposes, produces apportionable business income under the North Carolina General Statutes.
2) Whether Taxpayer’s capital, its affiliated indebtedness and its accumulated retained earnings should be subject to North Carolina Franchise Tax.

2006-111

4/19/07

"Whether $(several) million received by Taxpayer from a lawsuit settlement with (third party 1) is business income within the meaning of G.S. 105-130.4(a)(1), as it existed during the year at issue."

2006-287

1/11/07

Whether the adjustments to deny tax credits, to increase the apportionment factor, and to make an addition to federal taxable income for taxes based on or measured by net income were lawful and proper?
2006-217 12/18/06 Whether Taxpayer’s primary business was an eligible business type within the meaning of G.S. § 105-129.4(a) so as to be entitled to the tax credit for creating jobs and the tax credit for investing in machinery and equipment as provided by Article 3A.
2004-108 11/19/04 Whether certain furniture and fixtures used in a Taxpayer's business qualify as machinery and equipment for purposes of the tax credit for investing in machinery and equipment in G.S. 105-129.9.
2002-3 11/14/02 Whether gain reported on a federal return as a result of an IRC § 338 election can be deducted from State taxable income and the character of the gain as business or nonbusiness income.
2001-550 7/1/04 Whether two out-of-state companies that license their intangibles for use in North Carolina to either affiliated companies or to third-party franchises were "doing business" in North Carolina, whether these companies were excluded corporations, and whether the penalties as imposed by the Department on these companies were lawful and proper.
2001-294 8/22/02 Eligibility of a research and development facility for the Article 3A credit for investing in machinery and equipment.
2001-289 12/21/01 Whether a corporation that is organized as a non-profit corporation but whose activities inure to the benefit of a for-profit corporation is exempt from corporate income and franchise tax.
2000-5
(Issue III)		 11/19/01 Taxpayer's claim that N.C. can't constitutionally tax the gain on the sale of two of Taxpayer's out-of-state divisions and Taxpayer's refusal to comply with the Secretary's order.
2000-5 12/29/00 Use of apportionment formula rejected by Tax Review Board and classification of gain from the sale of a division as business or non-business income.
97-990 9/19/00 Doing business in N.C. by an out-of-state trademark holding company, and whether a trademark holding company is an excluded corporation.

 

Estate Tax

Docket Number Date Decided Issue
2003-231 12/15/03 Whether the proposed assessment for additional estate tax is lawful and proper.
2002-365 10/9/02 Failure to file and failure to pay penalties imposed for late estate tax return.
2002-296 9/10/02 Failure to file and failure to pay penalties imposed for late estate tax return.

 

Gift Tax

Docket Number Date Decided Issue

2005-234

10/09/06

Whether taxpayer made taxable gifts by transferring to daughter, 99% interest in six parcels of real property, each of which was subject to a “reserved special power of appointment.”
2006-63 9/21/06 Whether taxpayer transferred property to brother for less than adequate and full consideration and whether the fair market value of the property should be reduced by any mortgages.
2004-340 11/19/04 Whether the assessment of penalties proposed against Donor for the taxable year 2002 are lawful and proper?
2003-565 8/11/04 Whether the gift of real property by Donors is properly divided between Son and Daughter-In-Law.
2003-381 1/30/04 Whether the transfers of three properties were gifts to both son and daughter-in-law or to son only.
2003-73 6/13/03 Whether the value of the gift was properly determined.
2001-607 2/14/02 Whether an overpayment that cannot be refunded because the statute of limitations has expired can be credited to a subsequent liability.
2001-502 1/14/02 Whether interest is payable by a taxpayer when the Department issues an erroneous refund, discovers the error, and then assesses the taxpayer for the amount refunded in error plus interest.
2001-68 5/15/01 Whether a transfer of real property by one brother to another was a gift or a transfer in trust.
2000-422 12/12/00 Qualified Personal Residence Trust.
2000-418 12/11/00 Whether the $10,000 annual exclusion applies to future interest and whether a step-parent is a class A donee.

 

Individual Income Tax

Docket Number Date Decided Issue

2007-101

12/6/07

Losses from dog breeding/showing disallowed/not for profit.

2007-199

12/5/07

Business loans by husband considered equity investment. Debt not worthless. Wife not entitled to deduction for business use of home.

2007-181

12/5/07

Taxpayers failed to substantiate itemized deductions and expenses claimed on Schedule C. Schedule C is not for profit.

2007-164

11/7/07

Whether or not bonus depreciation previously added back on a corporate income tax return may be deducted on an individual income tax return.

2007-88

10/31/07

Penalties.

2007-87

8/15/07

Failure to file North Carolina return.

2006-332

8/8/07

Whether or not individuals other than federal employees are subject to income tax.

2006-314

7/20/07

Whether taxpayers were entitled to a net economic loss.

2006-316

6/11/07

Whether the taxpayer was a resident of NC for income tax purposes, and whether the alimony she received during the tax years in question was taxable.

2006-324

5/18/07

Whether the Department of Revenue has the authority to correct a federal return.

2006-315

4/30/07

Whether taxpayer was required to file a North Carolina return to report wages earned during the taxable year.

2006-225

12/20/06

Whether Secretary of Revenue was required to notify Taxpayer of requirement to file a return.

2006-242

1/8/07

Never established that she is a taxpayer and to presume so violates 5th amendment.

2006-299

3/12/07

Whether the proposed assessment for additional income tax was lawful and proper.

2006-268

2/7/07

Whether Taxpayer was entitled to charitable contributions claimed.

2006-254

1/25/07

Whether Taxpayer is a citizen of the United States.
2006-3 5/16/06 Whether Taxpayer is an employee that engaged in a revenue taxable activity.
2006-24 4/21/06 Whether Taxpayer is required to be notified by the Secretary of Revenue that he is liable for State income tax.
2006-279 1/9/07 Whether there was an error in computing additions to taxable income.
2006-2 6/26/06 Whether credit amounts exceeding $50,000 on qualified business investments can be carried over to succeeding tax years.
2005-403 6/8/06 Whether taxpayer timely filed an application for tax credit for qualified business investment.
2005-370 9/7/06 Whether taxpayers were entitled to deductions for charitable contributions and business expenses in excess of the amounts allowed by the Department.
2005-200 9/7/06 Whether taxpayers were entitled to charitable contributions claimed on their return.
2004-510 6/7/05 Taxpayer, a North Carolina resident, did not file a North Carolina return even though he had wages taxable to North Carolina. An assessment was based upon the best information available. No North Carolina tax was withheld; therefore, the Taxpayer is subject to the 50% penalty for the amount not properly withheld.
2002-689 9/07/06 Whether taxpayers were entitled to deductions for nonbusiness itemized deductions in excess of the amounts allowed by the Department and whether Husband was entitled to deductions for employee business expenses and self-employment related expenses in excess of the amounts allowed by the Department.
2004-439 3/07/05 Whether the adjustments disallowing itemized deductions, rental loss, and tax credits for the taxable year were proper. Wife argues that she was not a part-year resident of NC in 2000 and a nonresident for entire year of 2001. However, the facts show that she was a NC resident for both years.
2004-362 1/5/05 Whether the proposed assessment for additional income tax was lawful and proper.
2004-276 12/8/04 Whether the assessments for additional tax, penalties, and interest were lawful and proper.
2004-232 9/22/04 Whether Taxpayer correctly claimed deduction for intangibles tax refund.
2004-231 7/30/04 Whether the Taxpayer has income, whether income is limited to corporate profits, and whether the payment of income tax is voluntary.
2004-200 12/14/04 Whether the denial of a refund for the taxable year 1999 was lawful and proper.
2004-109 9/1/04 Whether claim for a refund was timely made.
2004-80 10/4/04 Whether the denial of a refund of an overpayment of tax on a return not received by the Department within three years of the due date was lawful and proper.
2004-62(B) 7/12/04 Whether the proposed assessment for additional income tax was lawful and proper.
2004-62(A) 7/12/04 Whether the proposed assessment for additional income tax was lawful and proper.
2003-555 5/14/04 Is Taxpayer entitled to business expenses in excess of the amounts allowed by the Department?
2003-554 7/12/04 Whether the proposed assessments for additional income tax were lawful and proper.
2003-413 2/17/04 Frivolous Return
2003-355 2/17/04 Whether the proposed assessments disallowing the tax credit for premiums paid for long term care insurance is lawful and proper.
2003-327 11/20/03 Whether the proposed assessments for additional income tax were lawful and proper.
2003-318 11/15/03 Whether the taxpayers were residents of North Carolina for income tax purposes during the entire tax years in question, and whether the proposed assessments for additional tax, penalties and interest were lawful and proper.
2003-271 11/4/03 Frivolous return.
2003-220 8/14/03 Whether the taxpayer was a resident of North Carolina for income tax purposes, and whether the proposed assessments for additional income tax were lawful and proper.
2003-76 5/14/03 Whether the taxpayer was engaged in a farming activity for profit.
2002-705 5/7/03 Whether the taxpayer has income, whether income is limited to corporate profits, and whether the payment of income tax is voluntary.
2002-689 5/15/03 Whether taxpayer adequately substantiated business expenses, and whether taxpayer was entitled to away from home expenses.
2002-558 2/18/03 Whether the indirect audit method used by auditor was flawed.
2002-526 11/25/02 Whether "stay-on-pay" is severance wages.
2002-397 10/8/02 Whether wages are income and whether the State can assess a taxpayer when the IRS has not made a final determination.
2002-364 1/27/03 Whether taxpayer adequately substantiated deductions and expenses, and whether taxpayer had a loss from rental property.
2002-309 7/19/02 Whether a "stay bonus" is deductible as severance wages under G.S. 105-134.6(6)(11).
2002-228 8/29/02 Whether compensation for labor is income, whether payment of income tax is voluntary, and whether taxpayer's return was subject to the frivolous return penalty.
2002-209 7/31/02 Whether income is taxable if it is from a source not listed in specific Internal Revenue Code regulations.
2002-208 7/31/02 Whether wages are income, whether payment of tax is voluntary, and whether the income tax is an unconstitutional delegation by the General Assembly of its taxing power.
2002-159 7/2/02 Whether income from sources within the U.S. is taxable.
2002-137 7/17/02 Whether the income tax violates the U.S. Constitution and applies only to government employees and government granted privileges, and whether the assessments were timely issued.
2002-101 6/25/02 Whether wages are income, whether payment of the income tax is voluntary, and whether the Department can determine a taxpayer's federal taxable income.
2002-29 5/3/02 Burden of proof when taxpayer does not produce records, and effect of Department's failure to schedule hearing within 90 days of request.
2001-664 2/15/02 Whether the state income tax violates Article V, Section 2(1) of the N.C. Constitution, and whether wages are income.
2001-608 6/18/02 Whether wages are income and state's authority to impose income tax.
2001-555 12/10/01 Whether wages are considered income.
2001-545 12/6/01 How to allocate federal deductions of a resident and a nonresident between spouses when one spouse is a nonresident with no N.C. income and the spouses filed a joint federal return.
2001-461 1/24/02 Application of estimated tax payments made by a partnership to the tax liabilities of the partners.
2001-285 8/28/01 Determination of N.C. taxable income for a part-year resident and the effect of not scheduling a hearing within the statutory timeline.
2001-219 5/24/02 Deductions for employee business expenses and charitable contributions.
2001-218 7/9/01 Disallowance of deduction for mortgage interest on state return when interest was included as itemized deduction on federal return.
2001-217 4/9/01 Whether interest can be waived.
2001-216 5/1/01 Set-off of income tax refund.
2001-84 5/3/01 Taxation of pension income from a state other than N.C.
2001-69 12/6/01 Whether wages are considered income.
2001-24 5/3/01 Whether wages and salaries are income.
2001-20 5/22/01 Various issues concerning the State's authority to impose a tax on wage income.
2000-524 6/5/01 Whether the Bailey retirement settlement extinguished the State's liability for tax paid on government retirement benefits for tax years 1992 through 1997.
2000-420 7/9/01 State's authority to tax wage income of a self-proclaimed "sovereign citizen of the North Carolina Republic."
2000-376 10/24/00 Whether interest can be waived on income tax assessment.
2000-371 10/9/00 Application of late payment penalty.
2000-370 11/27/00 Department's authority to make assessments based on federal information or otherwise and whether wages are income.
2000-343 9/18/00 Application of late payment penalty.
2000-340 12/11/00 Whether wages and pensions are income and whether a return is required.
2000-136 1/6/03 Whether indirect audit method was reasonable.
99-351 7/30/01 Taxation of Income received by an enrolled member of a federally recognized Indian Tribe.

 

Motor Fuels Tax

Docket Number Date Decided Issue
2006-153 3/30/07 Whether the Division properly calculated Taxpayer's operational miles, fuel consumption, and miles per gallon for its qualified over the road and special mobile equipment fleets and whether, under certain circumstances, it is acceptable to determine mileage information by grouping vehicle miles according to vehicle type and use.
2004-402 10/26/04 Whether the civil penalty assessments against Taxpayer for refusing to allow Division investigators to take a fuel sample and for the unlawful use of dyed diesel fuel in a licensed vehicle were proper.
2004-313 12/8/04 Whether the Division properly assessed Taxpayer for refunds paid on claims for tax paid (undyed) kerosene presumably sold for nonhighway use where it was shown that Taxpayer failed to comply with the requirements of G.S. 105-449.105A for monthly refunds.
2004-312 11/23/04 Whether the use of dyed (nontaxpaid) diesel fuel in Taxpayer’s licensed vehicle on the public highway is unlawful, subjecting it a civil penalty assessment.
2004-309 11/22/04 Whether the Division properly assessed Taxpayer for refunds of motor fuel taxes previously paid for alleged off road use of tax paid fuel in Tax Years 2000, 2001 and 2002, when Taxpayer failed to supply verifiable records documenting claimed nonhighway use.
2004-308 12/17/04 Whether the use of dyed (nontaxpaid) diesel fuel in Taxpayer’s licensed vehicle on the public highway is unlawful, subjecting it a civil penalty assessment.
2004-278 10/8/04 Whether the Division properly assessed Taxpayer for refunds of motor fuel taxes previously paid for alleged off road use of tax paid fuel when Taxpayer failed to supply verifiable records documenting claimed nonhighway use.
2004-271 10/8/04 Whether the civil penalty assessments against Taxpayer for the unlawful use and dispensing of dyed diesel fuel in its licensed highway vehicles were proper.
2004-270 10/8/04 Whether the civil penalty assessment against Taxpayer for the unlawful use and dispensing of dyed diesel fuel in a licensed highway vehicle was proper and whether the Division properly calculated the Taxpayer's fuel consumption.
2004-103 11/19/04 Whether the Division properly calculated Taxpayer's operational miles and fuel consumption resulting in the proposed International Fuel Tax Agreement (IFTA) assessment for tax and interest
2004-50 6/9/04 Whether the use of dyed (nontaxpaid) diesel fuel in Taxpayer’s licensed vehicle on the public highway is unlawful, subjecting it a civil penalty assessment.
2004-49 6/9/04 Whether the use of dyed (nontaxpaid) diesel fuel in Taxpayer’s licensed vehicles are unlawful, subjecting it to civil penalty assessments.
2004-18 5/17/04 Whether the Division properly assessed Taxpayer for refunds paid on claims for taxpaid (undyed) kerosene presumably sold for nonhighway use where it was shown that taxpayer failed to comply with the requirements of G.S. 105-449.105A for monthly refunds.
2003-427 1/28/04 Whether, in the absence of records, the Division properly calculated the Taxpayer's bulk fuel consumption.
2003-426 1/28/04 Whether the Secretary should refund previously paid civil penalties assessed against taxpayer for the unlawful use of dyed diesel fuel in three (3) of its licensed vehicles.
2003-418 3/12/04 Whether the Division properly denied the refund claim brought by the Taxpayer for taxes paid on motor fuel allegedly used off road.
2003-414 3/1/04 Whether the Division properly assessed Taxpayer for refunds paid on claims for taxpaid (undyed) kerosene presumably sold for nonhighway use where it was shown that the Taxpayer failed to comply with requirements for monthly refunds.
2003-300 10/6/04 Whether the civil penalty assessments against Taxpayer for the unlawful use of dyed diesel fuel were proper.
2003-301 1/29/04 Whether the Taxpayer is subject to the civil penalty assessment for the use of dyed (nontaxpaid) diesel fuel in his licensed vehicle on the public highway; and whether the Division properly calculated the Taxpayer's nonhighway fuel consumption resulting in the proposed assessment for tax, penalty, and interest.
2003-298 1/13/04 Whether the Taxpayer is subject to the civil penalty assessment for the use of dyed (nontaxpaid) diesel fuel in his licensed vehicle on the public highway; and whether the Division properly calculated the Taxpayer's nonhighway fuel consumption resulting in the proposed assessment for tax, penalty, and interest.
2003-297 12/15/03 Whether the Secretary should refund previously paid civil penalties assessed against taxpayer for the unlawful dispensing and use of dyed diesel fuel in its licensed vehicles, and whether, in the absence of withdrawal records or other verifiable information, coupled with taxpayer's documented misuse of nontaxpaid fuel, the Division properly calculated taxpayer's special fuels tax liability pursuant to G.S. 105-449.87(b).
2003-294 5/12/04 Whether Taxpayer's use of dyed (nontaxpaid) diesel fuel in its licensed vehicles is unlawful pursuant to G.G. 105-449.117, subjecting him to two (2) $1,000,000.00 civil penalty assessments issued May 14, 2003.
2003-293 1/30/04 Whether the Taxpayer is subject to two civil penalty assessments for the use of dyed (nontaxpaid) diesel fuel in his licensed vehicles on the public highway; and whether the Division properly calculated the Taxpayer's nonhighway fuel consumption resulting in the proposed assessment for tax, penalty , and interest.
2003-265 7/31/03 Whether the Secretary should cancel taxpayer/licensee's motor fuels distributor's license for failure to obtain a replacement surety bond.
2003-263 9/15/03 Whether the Secretary should refund civil penalties assessed against taxpayer for transporting motor fuel without a shipping document (bill of lading) required by G.S. 105-449.115.
2003-194 10/25/04 Whether the Division properly assessed Taxpayer penalties for failure to obtain a motor fuels transporter's license and to file monthly informational returns.
2003-181 11/17/03 Whether, in the absence of sufficient verifiable records, the Division properly calculated taxpayer’s operational miles and fuel consumption based upon the best information available to determine taxpayer's International Fuel Tax Agreement (IFTA) assessment for tax, penalty, and interest.
2003-175 7/29/03 Whether the Secretary should refund the $1,500.00 civil penalty assessment issued against taxpayer pursuant to G.S. 105-449.115 for delivering motor fuel to a destination state other than that shown on the shipping document.
2003-174 10/21/03 Whether the civil penalty of $1,000.00 assessed against taxpayer pursuant to G.S. 105-449.118A for refusing to allow Division investigators to take a fuel sample was proper, and whether the civil penalty of $1,000.00 assessed against taxpayer pursuant to G.S. 105-449.117 for the unlawful use of dyed (nontaxpaid) diesel fuel was proper.
2003-102 11/5/03 Whether taxpayer's use of dyed (nontaxpaid) diesel fuel in a licensed vehicle with mounted fertilizer spreading equipment is allowed under section 4082 of the Code, and is therefore lawful pursuant to G.S. 105-449.117, and whether the Division properly calculated taxpayer's operational miles, fuel purchases, and fuel consumption and correctly determined the proposed assessment of tax, penalty, and interest.
2003-101 6/27/03 Application of dyed diesel penalty when laboratory analysis indicates evidence of non-highway dyed fuel in a highway vehicle.
2003-15 9/23/03 Whether the Division, using taxpayer's own International Registration Plan (IRP) reports in the absence of other sufficiently verifiable records, properly calculated taxpayer's operational miles and fuel consumption resulting in the proposed International Fuel Tax Agreement (IFTA) assessment of tax, penalty, and interest.
2003-14 5/5/03 Whether, in the absence of sufficient verifiable information, taxpayer's operational miles, fuel purchases, and consumption were properly calculated to determine motor fuel taxes due.
2003-13 8/20/03 Whether, in the absence of sufficient verifiable records, the Division properly calculated Taxpayer's operational miles and fuel consumption of its fleet resulting in the proposed International Fuel Tax Agreement (IFTA) assessment of tax, penalty, and interest.
2002-702 1/28/03 Whether the Secretary should cancel Licensee's distributor's license for failure to obtain a replacement bond as required by the State Revenue Act.
2002-666 2/12/03 Whether, in the absence of required records, taxpayer's operational miles, fuel purchases and consumption were properly calculated to determine motor fuel taxes due.
2002-485 1/7/03 Whether, in the absence of sufficient verifiable information, taxpayer's operational miles, fuel purchases and consumption were properly calculated to determine motor fuel taxes due.
2002-138 7/25/02 The Taxpayer's miles driven and miles per gallon.
2001-420 2/14/02 Applicable miles-per-gallon factor when taxpayer has incomplete records.
2001-223 11/14/01 Whether the miles-per-gallon factor was calculated correctly.

 

Privilege and Excise Taxes

Docket Number Date Decided Issue
2006-25 11/6/06 Whether the disallowance of the 2% discount as the result of late payment of cigarette tax for the month of September 2005 was lawful and proper.
2001-573 4/4/02 Whether the installment paper privilege tax applies to paper that is purchased from an out-of-state dealer and is secured by a lien on personal property located in N.C.

 

Sales and Use Tax

Docket Number Date Decided Issue

2007-42

12/28/07

(1) Whether the Taxpayer is president of the Corporation.
(2) Whether as president of the Corporation, the Taxpayer is a responsible officer and, therefore, liable for the unpaid sales taxes of the Corporation.

2007-161

12/11/07

(1) Whether the Taxpayer’s rentals of tents, equipment, inflatable attractions, popcorn machines and cotton candy machines to customers are subject to sales tax.
(2) Whether delivery charges associated with the rental of the Taxpayer’s tangible personal property are subject to sales tax.
(3) Whether if the Taxpayer’s employees deliver, set up and maintain tangible personal property such as inflatable attractions for customers this is considered equipment furnished with an operator.

2007-108

10/15/07

(1) Whether sales of used articles taken in trade by the Taxpayer are subject to North Carolina sales tax?
(2) Whether the Taxpayer kept acceptable shipping documentation to support exempt retail sales of boats and accessories made and delivered to customers out-of-state.

2007-70

9/6/07

(1) Whether the Taxpayer maintained shipping documentation adequate to exempt retail sales of boats and other tangible personal property made and delivered to customers out-of-state.
(2) Whether the Taxpayer’s sales of used boats and motors taken in trade are subject to North Carolina sales tax.
(3) Whether the Department is barred from assessing the Taxpayer the additional tax as a result of erroneous verbal advice rendered by an employee of the Department of Revenue.

2007-69

9/6/07

(1) Whether the Taxpayer maintained shipping documentation adequate to exempt retail sales of boats and other tangible personal property made and delivered to customers out-of-state.
(2) Whether the Taxpayer’s sales of used boats and motors taken in trade are subject to North Carolina sales tax.
(3) Whether the Department is barred from assessing the Taxpayer the additional tax as a result of erroneous verbal advice rendered by an employee of the Department of Revenue.

2007-13

6/7/07

Whether the bakery items the Taxpayer prepares and then sells in its thrift stores are sales of prepared food subject to the general State rate and applicable local rate of sales or use tax.

2007-12

6/7/07

Whether the bakery items the Taxpayer prepares and then sells in its thrift stores are sales of prepared food subject to the general State rate and applicable local rate of sales or use tax.

2006-298

8/28/07

Whether the fees charged by the Taxpayer for the design consultation, selection, and preparation are considered part of the sales price of the tangible personal property the Taxpayer sold to the same customers and subject to sales and use tax.

2007-41

6/26/07

Whether the Taxpayer owed use tax on its rentals of chairs, tables, tents and other equipment that it used in preparing and serving catered meals that were marked up and charged as a line item on the invoice given to its customers.

2007-14

6/26/07

(1) Whether the Taxpayer was liable for sales tax on the sales price of its optional maintenance agreements.
(2) Whether the Taxpayer owed use tax on the cost of the parts, supplies and materials used to fulfill its optional maintenance agreements.

2007-1

6/12/07

(1) Whether prepared food, soft drinks and non-food items are subject to the general State and local rate of tax during the audit period.
(2) Whether the assessment is correct and properly proposed to be assessed against the Taxpayer based on the best information available.
(3) Whether the fact that the Department did not notify the Taxpayer that the rate of tax remitted through their sales and use tax returns on prepared foods and soft drinks was incorrect prevents the Department from assessing the tax.

2006-154

4/9/07

Whether the Taxpayer is a manufacturer or a contract manufacturer entitled to the 1% State rate of tax with a maximum tax of $80.00 per article on its purchases of mill machinery, mill machinery parts and accessories.

2006-255

3/5/07

(1) Whether the Taxpayer’s retail sales of seed and fertilizer after February 1, 2002 to customers who are not classified as farmers making purchases for agricultural purposes are subject to sales tax; and
(2) Whether the fact that the Taxpayer may not have received notification of the statutory change in application of tax to sales of seed and fertilizer absolves the Taxpayer of any failure to collect and remit tax on sales of these items.

2005-134

3/15/06

Whether the Taxpayer is one of the types of nonprofit entities listed in N.C. Gen. Stat. § 105-164.14(b) and, therefore, eligible to receive semiannual refunds of the sales and use taxes paid on direct purchases of tangible personal property for use in carrying on charitable operations.

2005-209

3/6/06

(1) Whether tangible personal property purchased by the Taxpayer for storage, use or consumption in this State is subject to use tax; and
(2) Whether the machinery purchased by the Taxpayer and used in its sand pits is subject to the 1% preferential rate of State tax, $80.00 maximum tax per article, or subject to the general State and applicable local sales and use tax.
2006-243 1/11/07 (1) Whether the Taxpayer purchased non-taxable advertising services or tangible personal property in the form of printed advertising material for distribution in this State which are subject to use tax on its cost price.
(2) Whether the charge for postage on the printed advertising material is considered a part of the “sales price” of the printed advertising material distributed to donees in North Carolina taxable.
2006-218 1/10/07 Whether the Department of Revenue properly assessed sales tax where the Taxpayer delivered goods to customers in the State or lacked documentation of delivery outside of the State.
2006-177 1/16/07 (1) Whether the Taxpayer was engaged in business as a retailer in North Carolina during the audit period.
(2) Whether the Taxpayer’s retail sales of tangible personal property installed in customers’ homes during the audit period were subject to North Carolina sales and use tax.
2006-147 2/7/07 Whether the Taxpayer, as a managing member of the LLC, is a responsible officer and, therefore, liable for the unpaid sales taxes of the LLC.
2006-145 11/7/06 Whether the Taxpayer, as a managing member of the LLC, is a responsible officer and, therefore, liable for the unpaid sales taxes of the LLC.
2006-216 12/6/06 Whether the tire disposal fee the Taxpayer charged customers to cover the expense of disposing of their old tires when they bought new tires a part of the sales price of the new tires and subject to tax.
2006-178 11/3/06 Whether the general rate of State and local sales or use tax, or the 1% preferential rate of State tax, with a maximum tax of $80.00 per article, applies to a screener purchased by the Taxpayer and used to screen the sand it extracted. This could also apply to sand pit operators, quarries or screeners.
2006-114 8/24/06 Whether the Taxpayer is a manufacturer subject to the preferential 1% rate of State tax with a maximum tax of $80.00 per article on purchases of equipment used to fabricate gutters, cornices and downspouts used in fulfilling its performance contracts and whether the Department is barred from assessing the additional tax due as a result of erroneous verbal advice rendered by an employee of the Department of Revenue.
2005-416 7/24/06 Whether Taxpayer is a manufacturer making retail sales of cabinet doors, glass frames, and cabinet drawer fronts to contractors and other cabinet companies for use and whether the Department is barred from assessing additional tax due based on advice rendered by an employee of the Department.
2005-372 1/6/06 Whether a member of the armed services in a foreign country war zone owes use tax on purchases made outside North Carolina and shipped to the purchaser’s home in North Carolina.
2005-208 12/8/05 Whether Taxpayer’s sales and use tax assessment is properly proposed based on the best information available.
2005-145 9/12/05 Whether Taxpayer owes State sales tax where sales contract was entered into within the State for tangible personal property and the property was moved to the buyers’ home in another state and whether the contractors who moved the tangible personal property from the State of North Carolina to another state were agents for Taxpayer.
2005-75 10/26/05 Whether Taxpayer is engaged in business and liable for collecting and remitting sales or use tax on sales of tangible personal property to purchasers in North Carolina.
2005-52 6/8/05 Whether an optional maintenance agreement, where parts and materials are transferred as a condition of the agreement, subject to sales tax.
2004-417 2/22/05 Whether the Taxpayer is liable for collecting and remitting sales or use tax on sales of solo mailings of printed materials to purchasers in North Carolina and whether the Taxpayer is liable for the assessment of use tax on its purchases of direct mail advertising materials from its out-of-state franchisor.
2004-361 10/4/04 Whether the rental charges for equipment to a construction company used in the performance of a contract with a non-profit organization are subject to sales tax.
2004-360 3/7/05 Whether the Department properly assessed the Taxpayer for the sales tax liability of the corporation for which he was the responsible corporate officer.
2004-359 3/7/05 Whether the Department properly assessed the Taxpayer for the sales tax liability of the corporation for which he was the responsible corporate officer.
2004-350 12/21/04 Whether the Department is estopped from assessing the additional tax due as a result of erroneous verbal advice rendered by an employee of the Department of Revenue.
2004-348 5/18/05 Whether the wedding videos are taxable retail sales of tangible personal property or nontaxable services; whether “sitting fee” and “overtime charges” in connection with sales of photographs, portraits, picture albums, and video tapes are included as part of the taxable “sales price” of tangible personal property; and whether the Taxpayer is liable for sales tax on “unaccounted for income” based on the presumption that the gross receipts of a retailer are deemed taxable unless the contrary is established by proper records.
2004-304 9/13/04 Whether photographs, supplies, transparencies, and negatives are subject to sales and use tax when purchased by the Taxpayer from a vendor and delivered to third party printers for the production of printed brochures or advertising material then sold by the Taxpayer.
2004-303 9/13/04 Whether photographs, supplies, transparencies, and negatives are subject to sales and use tax when purchased by the Taxpayer from a vendor and delivered to third party printers for the production of printed brochures or advertising material then sold by the Taxpayer.
2004-260 7/14/05 Whether the Taxpayer purchased printed advertising material from its franchisor for “storage, use, or consumption” subject to North Carolina use tax.
2004-220 10/4/04 Whether the fees the Taxpayer paid to its out-of-state printer for the printing and delivery of advertising circulars are subject to use tax.
2004-199 9/1/04 Whether the Taxpayer is making sales of tangible personal property subject to sales tax or rendering a nontaxable service of videotaping and photographing weddings.
2004-68 10/20/04 Whether the audit method used by the Department is correct and whether the fraud penalty has been properly assessed.
2003-553 7/29/04 Whether sales tax the Taxpayer collected from its customers on the portion of the materials charges representing shop supplies used or consumed by the Taxpayer is an erroneous collection.
2003-475 2/19/04 Whether the Taxpayer is engaged in business for white goods disposal tax purposes and liable for collecting and remitting such tax on sales of white goods to purchasers in North Carolina; and whether the amount of the assessment was properly determined.
2003-474 2/19/04 Whether the Taxpayer is engaged in business for sales and use tax purposes and liable for collecting and remitting sales or use tax on sales of tangible personal property to purchasers in North Carolina; and whether the amount of the assessment was properly determined.
2003-443 6/30/04 Whether the Taxpayer's "solo" mailings postage is subject to sales or use tax or whether the taxpayer's mailings are exempt advertising services not involving the sale of tangible personal property; and whether the Department will abandon the proposed sales and use tax assessment because the taxpayer relied on erroneous professional advice from an attorney.
2003-442 3/12/04 Whether the Taxpayer purchased non-taxable advertising services or taxable tangible personal property (printed material) for distribution in North Carolina, and whether the pre-stamped envelopes containing printed material which is brought into North Carolina for distribution to donees are considered taxable or non-taxable out-of-state distribution.
2003-441 2/25/04 Whether the Taxpayer's charges to customers for the rental of portable toilets are subject to sales tax notwithstanding that the Taxpayer cleans and maintains the toilets during the period of use by the customer and makes no separate charge for such service, whether the Taxpayer is liable for the sales tax on the gross receipts from the rental of portable toilets which was not collected for the customers, and whether the Taxpayer can avoid the assessment of sales tax based on the fact that the sales tax was not collected for the use of portable toilets from the customers during the audit period.
2003-317 1/9/04 Whether the separately stated charges for dies listed on the Taxpayer's invoices to its printer customers retail sales are subject to sales tax; and whether the Department is estopped from assessing additional sales tax on dies in the current audit report because the retail sale of dies was not addressed or included in a prior audit report.
2003-292 12/18/03 Whether the purchase of a log home kit is subject to the use tax.
2003-262 10/9/03 Whether the design and creative services incurred in conjunction with the production and sale of tangible personal property are subject to sales and use tax.
2003-219 7/31/03 Whether an assessment is properly proposed to be assessed when the taxpayer claims to have not been notified of the statutory change in G.S. 105-164.13(1) effective 2/1/02.
2003-212 7/31/03 Whether film, proofs, negatives, and other items are subject to sales and use tax when used in the production of tangible personal property.
2003-176 10/29/03 Whether the single, line-item charge on invoices for the retail sale of safe described as "delivery," "labor," "labor and bolt-down," "labor and service to deliver and place," or "labor and service to deliver and install" constituted part of the sales price of the safe.
2003-171 8/29/03 Whether the sales of photographs included in the assessment were subject to sales tax, whether the assessment of tax on the retail sales was correctly proposed within the statute of limitations, and whether an officer of the Department provided protective advice barring the assessment.
2003-124 12/2/03 Whether the sitting fees, copyright fees, and retouch fees in conjunction with the sales of photographs are subject to sales tax, and whether the purchase of disks and order forms from out-of-state vendors are subject to use tax.
2003-122 6/18/03 Whether the taxpayer's purchases of building materials used in the construction of a U.S. Post Office are subject to use tax.
2003-74 4/28/03 Whether the county tax was correctly assessed based on the current sourcing principles.
2003-68 6/4/03 Whether the taxpayer's purchases of equipment used in bagging and terminaling contracts with manufacturers are subject to the preferential rate of tax.
2002-690 2/7/03 Whether the charges the taxpayer made to customers for delivery of tangible personal property are subject to sales tax.
2002-600 2/7/03 Whether the charges the taxpayer made to customers for delivery of tangible personal property are subject to sales tax.
2002-502 12/19/02 Whether a business that engraves steel rolls to be used by its customers in their printing process is a manufacturer.
2002-501 12/19/02 Whether a business that engraves steel rolls to be used by its customers in their printing process is a manufacturer.
2002-410 3/18/03 Whether the parts and materials used in optional maintenance contracts are subject to use tax, whether the taxpayer's optional maintenance contracts constitute a sale of tangible personal property, whether the taxpayer's optional maintenance contract is a bundled transaction, and whether the Department failed to respond timely to the taxpayer's request for a hearing before the Secretary of Revenue, and, if so, whether to assessment should be canceled.
2002-230 6/21/02 Whether receipts from coin-operated pay telephones for periods from 10/1/96 through 12/31/99 were subject to tax.
2002-229 7/11/02 Whether taxpayer's refund claim was timely.
2002-207 10/17/02 Whether imposition of the 50% civil fraud penalty after a criminal conviction for tax evasion for the same audit period violates the constitutional prohibition against double jeopardy.
2002-152 7/9/02 Whether a company that repackages pharmaceuticals produced by others is a manufacturer.
2002-141 8/9/02 Taxation of license fees for software upgrades accessed by a code transmitted electronically and taxation of software usage and maintenance fees.
2002-99 7/25/02 Use of weekly sales summaries made to mall as best evidence for assessments when taxpayer did not file returns.
2002-98 6/24/02 The number of mixed drinks the Taxpayer sold.
2002-63 7/11/02 Taxation of manufactured homes repossessed and then sold by the company financing the original sale of the homes.
2002-39 6/4/02 Assessment of tax based on difference in gross receipts reported in daily sales reports filed with home office and gross receipts reported on tax returns.
2002-37 6/4/02 Discrepancy in sales reported to home office and Department and misrepresentation of a 3% charge as a sales tax.
2002-36 5/24/02 Liability for use tax on building components assembled outside the state and used in a performance contract inside the state.
2002-35 2/28/02 Personal liability of a corporation's president/treasurer for sales taxes owed by the corporation.
2001-659 6/19/02 Whether mulch made from wood chips is a product of the forest in an unmanufactured state.
2001-544 4/2/02 Whether an out-of-state person who ships goods owned by that person to subcontractors in N.C. for modification and delivery to customers in N.C. is engaged in business in N.C.
2001-507 11/7/01 Whether Federal Schedule C information about gross receipts can be used in absence of adequate taxpayer records.
2001-504 1/14/02 Whether manufactured homes taken in trade as partial payments on other homes are subject to sales tax when subsequently sold, and whether the Department's past failure to assess a taxpayer for an erroneous practice protects the taxpayer against a future assessment for the erroneous practice.
2001-503 2/7/02 Whether a jeopardy assessment was appropriate under the circumstances.
2001-463 9/18/02 Tax treatment of film used by an advertising agency in the production of printed matter sold to customers.
2001-462 9/18/02 Tax treatment of film used by an advertising agency in the production of printed matter sold to customers.
2001-458 9/28/01 Appropriateness of jeopardy assessment.
2001-405 10/12/01 Liability for use tax on tangible personal property used in performance contracts and application of tax to delivery charges.
2001-397 1/22/02 Whether a person who is engaged in the business of rebuilding race car engines pursuant to service agreements is a manufacturer.
2001-276 2/28/02 Whether the exemption in G.S. 105-164.13(15) applies to a company that buys installment sale contracts from a retailer.
2001-259 7/12/01 Personal liability of president of corporation for sales tax not paid by the corporation.
2001-235 (Remand 2) 6/7/04 Whether taxpayer is entitled to retain tax collected from customers which is an amount in excess of the amount of tax paid on the cost of the tangible personal property used in the performance of a contract.
2001-235 (Remand) 10/21/02 Refund of sales tax erroneously billed and collected.
2001-235 8/28/01 Whether a taxpayer can receive a refund of sales tax collected in error when the taxpayer has not and is not willing to refund the tax to its customers.
2000-135 1/6/03 Whether the assessment is correct and properly proposed based on the best information available.
2000-134 8/29/01 Whether large, unexplained discrepancies in cash deposits and gross receipts reported on sales tax returns support an assessment based on the best information available.
2000-7 10/10/00 Exemption for a truck body installed on a truck chassis (105-164.13(32)) Erroneous written advice by Department.
99-370 7/9/01 Whether a nonprofit organization whose purpose is to promote youth soccer is a nonprofit charitable or educational organization eligible for sales and use tax refunds.

Unauthorized Substance Tax

Docket Number

Date Decided

Issue

2007-98

12/7/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-77

12/7/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-7

12/10/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-67

12/7/07

(1) Did Taxpayer have actual or constructive possession of methamphetamine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-66

12/7/07

(1) Did Taxpayer have actual or constructive possession of methamphetamine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-6

9/4/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-5

9/6/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-45

12/7/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-3

12/7/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-19

12/10/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-183

12/7/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-176

12/10/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-175

12/10/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-16

12/10/07

(1) Did Taxpayer have actual or constructive possession of marijuana, Oxycodone, Adderall, and Modafinil without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-15

12/10/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-307

9/12/07

(1) Did Taxpayer have actual or constructive possession of cocaine, MDMA, and Oxycodone without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-285

8/17/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-291

8/28/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-53

8/8/07

(1) Did Taxpayer have actual or constructive possession of Oxycontin without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-264

8/8/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2007-60

8/7/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-230

8/7/07

(1) Did Taxpayer have actual or constructive possession of methamphetamine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-234

7/16/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-281

6/28/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-169

6/18/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and
(2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-150

6/4/07

(1) Did Taxpayer have actual or constructive possession of cocaine and marijuana without proper tax stamps affixed, and (2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-262

5/1/07

(1) Did Taxpayer have actual or constructive possession of cocaine and marijuana without proper tax stamps affixed, and (2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-239

4/30/07

(1) Did Taxpayer have actual or constructive possession of cocaine without proper tax stamps affixed, and (2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-115

3/9/06

(1) Did Taxpayer have actual possession of cocaine without proper tax stamps affixed, and (2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2006-318

3/15/07

(1) Did Taxpayer have actual or constructive possession of marijuana without proper tax stamps affixed, and (2) Is Taxpayer subject to the assessment of unauthorized substance excise tax?

2003-269

10/6/03

Determining the taxable weight of marijuana concealed in chocolate fudge.

2003-61

8/26/03

Whether the driver of a vehicle can be found in constructive possession of a controlled substance whose possession is claimed by another.

2002-683

7/23/03

The applicable standards for accurately determining the weight of marijuana plants.

Withholding Tax

 

Docket Number Date Decided Issue
2004-45 6/25/04 Whether taxpayer is responsible for deducting, accounting for, or paying the income tax withheld or required to have been withheld from wages paid to employees by Corporation.
2002-40 6/4/02 Application of civil fraud penalty when the amount of tax paid by taxpayer was consistently less than the amount shown due by the payroll records.
2002-38 6/4/02 Application of civil fraud penalty when the amount of tax paid by taxpayer was consistently less than the amount shown due by the payroll records.
2001-611 4/11/02 Department's denial of request to waive late payment penalties.
2001-610 10/18/01 Appropriateness of jeopardy assessments against taxpayer who has not paid tax due for 5 years.
2000-137 1/6/03 Whether workers were determined to be employees and, therefore, subject to withholding by taxpayer.
2000-70 10/10/00 Liability of Corporation's president, as a responsible officer, for unpaid withholding tax.