NC S97

Modifies G.S. 105-241.7(a) to clarify when the Department of Revenue must initiate refunds of tax overpayments, changing the standard from when a return is processed to when the Department discovers an overpayment before the statute of limitations expires.

Defines three circumstances of discovery: automated processing of a return indicates further review is needed, an employee review of a return indicates an overpayment, or an audit by a Department employee indicates an overpayment.

Establishes that the statute of limitations is satisfied when the Department's automated processing indicates a return requires further review, regardless of when an employee later verifies the refund is actually due.

Directs the Department of Revenue to issue refunds that were discovered within the statute of limitations under the clarified standard.

Effective upon becoming law on March 9, 2011.