Instructions for Form E-588F, Claim for Refund of Motor Vehicle Lease or Subscription Tax

General Instructions

This form is for use by taxpayers who have overpaid Motor Vehicle Lease or Subscription Taxes. 

In general, the statute of limitations for obtaining a refund of an overpayment is the later of three years after the due date of the return or two years after payment of the tax. For a claim for refund filed within the statute of limitations, the Department must take one of the following actions within six months after the date the claim for refund is filed:

  • send the taxpayer a refund of the amount shown due on the claim for refund;
  • adjust the amount of the refund shown due and send the taxpayer a refund of the adjusted amount;
  • deny the refund and send the taxpayer a notice of proposed denial; or
  • request additional information from the taxpayer. 

If the Department does not take one of the actions within six months, the inaction is considered a proposed denial of the requested refund. A taxpayer who objects to a proposed denial of a refund may request a Departmental review of the proposed action by filing a Form NC-242, Objection and Request for Departmental Review within the time provided in G.S. § 105-241.11.

If the Department selects a claim for refund for examination, the taxpayer has the same rights that the taxpayer would have during an examination of a return by the Department. If the Department determines that a claim for refund was not filed within the statute of limitations, the refund request will be denied and the Department will issue a notice of denied refund. The Department’s notice of denied refund will provide the appeal procedures you must follow to contest the Department’s determination. Refer to the Resolving Disputes About Your Taxes webpage for additional information

How to Prepare Return: Specific Line and Column Instructions

  • Line 1 - Enter the amount of tax paid to the Department for the period.
  • Line 2 - Enter the correct amount of tax due for the period.
  • Line 3 - Subtract the tax on Line 2 from Line 1 and enter the difference. This is the total amount of refund requested.
  • Line 4 - Allocate the amount of 3.00% Tax, 5.00% Tax and 8.00% Tax included on Line 4 in the "Tax" column that corresponds with the applicable rate. The sum of the 3.00% Tax, 5.00% Tax and 8.00% Tax amounts must equal the amount on Line 3 Amount of Refund Requested.

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