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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14018
Experience:  15years with H & R Block. Divisional leader, Instructor
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I received a notice from the NC Department of Revenue that

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I received a notice from the NC Department of Revenue that I owe back personal income taxes of approx. $6600 (includes penalty & interest) dating from tax year 1994. I am certain I have not received ANY notice about this tax in over 10-12 years, probably back to 1998 or earlier. Do I owes this money?

Robin D :

Hello and thank you for using Just Answer,
The state does have statute of limitations on when they can assess tax and that generally 3 years after a return is filed.


There is no statute of limitations and the NC Secretary may propose an assessment of tax due from a taxpayer at any time if any of the following applies:


a. The taxpayer did not file a return.


b. The taxpayer filed a fraudulent return.


c. The taxpayer attempted in any manner to fraudulently evade or defeat the tax.

Robin D :

If you filed a return for the 1994 tax year and the state did not audit in 3 years then no you would not owe now.
If you did not file or filed a fraudulent return the state has no time frame assess the tax.

Robin D :

You need to look at if you were liable for NC tax in 1994. Did you live in NC or receive NC sourced income as a nonresident?

Robin D :

If you did and did not file then the state can pursue this unfortunately.

Robin D :

If you filed and did not pay then the state had 10 years to collect.

Robin D :

The 10 years would have been from the date filed or assessment made.

Robin D :

This would have been in 1995 for a 1994 tax year.

Customer:

I am sure I filed a NC return in 1994. I probably did owe the taxes at that time. I simply have heard nothing from NC about this since (I am guessing here) 1998+/-.

Robin D :

This is an all too occurring thing recently. Many states are finding taxpayers and the dates are many years in the past

Robin D :

You could request a copy of the return they have.

Customer:

That is a good idea. I would rather pay an attorney than the State anyway.

Robin D :

I wish you all the best.

Customer:

Just another day in paradise.

Robin D :

I had to smile..............big Buffet fan

Customer:

Me too. Anyway thanks for the basic info. I think I can safely tell NCDR to go pound sand on this one. I am completely current with them other than this.

Robin D :

Your positive rating is always thanks enough.

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