North Carolina Blames IRS for Erroneous Tax Notices

The North Carolina Department of Revenue is pointing to inaccurate information from the IRS as the reason why it sent tax due notices to up to 2,000 state taxpayers.

The incorrect notices informed some taxpayers that they still owed state taxes for 2008 to North Carolina. “The notices were sent after the federal Internal Revenue Service provided the state Department of Revenue with inaccurate data about federal taxable income for some returns,” said the state revenue collection agency. “The IRS routinely sends federal tax information to the North Carolina Department of Revenue to ensure compliance with state returns. The inaccurate federal data caused some notices to be issued in error.”

The North Carolina Department of Revenue believes that fewer than 2,000 taxpayers have been affected by the error. The error is limited to those taxpayers who claimed the standard deduction for 2008 and who increased their deduction for property taxes or loss after a federal disaster.

The North Carolina Department of Revenue has already started correcting the problem for those taxpayers who have called for assistance, and is working to identify and contact the other affected individuals.

The incorrect notices were dated and mailed March 2, 2011. If taxpayers received a notice with this date and the notice indicates an explanation that “an adjustment has been made to change the federal taxable income as reported on your North Carolina return to the amount per your federal income tax return,” they should contact NCDOR Taxpayer Assistance at 1-(877) 252-3052.

“We apologize for any inconvenience this has caused North Carolina taxpayers, and we are moving as quickly as possible to correct the situation. Customer service and being easy to do business with remain our top priorities,” said North Carolina Secretary of Revenue David Hoyle in a statement.

For reprint and licensing requests for this article, click here.
Tax practice Tax season
MORE FROM ACCOUNTING TODAY