NC S538

Failure to issue a final determination within nine months of a taxpayer's request for review constitutes an automatic grant of the requested refund or removal of a proposed assessment by operation of law, unless specific exceptions apply.

The Department of Revenue must send the taxpayer a refund or notification of assessment removal when the nine-month deadline passes without a final determination, unless the time was extended by mutual agreement, the taxpayer failed to respond to information requests, or other specified circumstances exist.

Requests for review must include detailed explanation and supporting documentation of specific grounds; inability to pay an assessment is not sufficient basis and results in automatic denial with no right to further administrative or judicial review.

The Department may request additional information from taxpayers but must complete all information requests at least 60 days before the nine-month deadline expires, or receive a 90-day extension from the receipt date if information comes in later.

The act becomes effective January 1, 2014, and applies to all requests for review filed on or after that date.