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Taxation

Jun 6, 2023

Taxation – Sales & Use – Prepaid Cell Service

Respondent is a retailer of Boost Mobile goods and services. During the audit period, respondent failed to collect sales tax on Boost’s “Real Time Replenishments” (RTRs). Even though the RTRs may be redeemed on a variety of goods and services sold by Boost – and not just on wireless plans – under G.S. § 105-164.3(27a), […]

Jun 2, 2023

Taxation – Statute of Limitations – Mailbox Rule – Statutory Preemption – Delivery Allegation

The plaintiff-taxpayer adequately alleged the common-law mailbox rule, which would have allowed him to claim a presumption that his refund request was delivered to the IRS. However, for taxpayers, the mailbox rule has been preempted by 26 U.S.C. § 7502. Pursuant to § 7502, delivery is presumed only if the taxpayer sends his documents by […]

May 10, 2023

Taxation – Administrative – Constitutional Question – ‘As Applied’ vs. Facial Challenge – Subject Matter Jurisdiction

The respondent-taxpayer asked the Office of Administrative Hearings (OAH) to declare that petitioner North Carolina Department of Revenue’s application of a tax statute to respondent violated the dormant Commerce Clause of the U.S. Constitution (the statute treated loans to affiliates inside North Carolina differently than those to affiliates outside the state). Regardless of whether a […[...]

Feb 10, 2023

Taxation – Sales & Use Tax – Mill Machinery Exemption – Asphalt Production – Contractor

During the tax years in question, the respondent-taxpayer “manufactured” vast quantities of hot mix asphalt. It did so by using the process that our Supreme Court has repeatedly described as manufacturing, i.e., “the producing of a new article . . . by the application of skill and labor to the raw materials of which it […]

Apr 12, 2016

Criminal Practice – Marijuana Trafficking – Taxation – Unauthorized Substances – Quashed Subpoena – Revenue Department Employee

State v. Stimson (Lawyers Weekly No. 011-124-16, 9 pp.) (Rick Elmore, J.) Appealed from Henderson County Superior Court (Mark Powell, J.) N.C. App. Holding: Even though revenue stamps were affixed to some of the marijuana plants seized from defendant’s property, the version of G.S. § 105-113.112 that was in effect when defendant was indicated on […]

Apr 10, 2015

Taxation — Real Property – Valuation – Third Appeal

In re Appeal of Parkdale Mills (Lawyers Weekly No. 15-07-0304, 15 pp.) (Wanda Bryant, J.) (Chris Dillon, J., concurring) Appealed from the Property Tax Commission. N.C. App. Holding: In the last appeal in this case, the court said that, upon remand, the Property Tax Commission was to conduct further hearings as necessary. Therefore, the Commission […]

Aug 13, 2014

Real Property – Taxation – Valuation – Insufficient Findings

In re Appeal of King (Lawyers Weekly No. 14-16-0780, 9 pp.) (Douglas McCullough, J.) Appealed from the Property Tax Commission. N.C. App. Unpub. Holding: The Property Tax Commission’s recitation of the parties’ evidence and positions is inadequate to explain how the Commission weighed the evidence to reach its decision using the appropriate burden-shifting framework and […]

Dec 28, 2012

Civil Practice – Real Party in Interest – Real Property – Taxation – County Commission

Broughton v. County Commission Since plaintiff was challenging the valuation of her Wake County real property for tax purposes, the county was the proper defendant.

Dec 26, 2012

Taxation – Real Property – Charitable Exemption – Low-Cost Housing – Subsidiary LLC

In re Appeal of NC Yadkin House, LLC Although legal title to the apartment complex in question resides with the appellant N.C. limited liability company, “ownership” of the complex may be imputed to the parent corporation, an organization recognized by the IRS as nonprofit.

Aug 22, 2012

Taxation – Corporate – Constitutional — Procedural Due Process – Notice – Corporate Combination for Income Tax – Penalties

Delhaize America, Inc. v. Lay The state Department of Revenue did not violate plaintiff’s procedural due process rights by forcing a combination of plaintiff and its subsidiary’s earnings, pursuant to G.S. § 105-130.6.

Aug 22, 2012

Taxation – Personal Property – Valuation – Computer Equipment – Depreciation – Burden of Proof

In re Appeal of IBM Credit Corp. Even if we were to remand this case (for a third time), the Property Tax Commission would be well within its authority to find, yet again, that the taxpayer’s evidence is not “reliable” or “credible.” Even if the Commission rejects the taxpayer’s evidence, the taxpayer still wins because the county did not meet its burden of proof.

Jun 27, 2012

Taxation – Criminal Practice – Tax Evasion – Pastors – Underreported Income

U.S. v. Jinwright A couple who served as co-pastors of a North Carolina church are convicted of tax evasion for omitting millions of dollars of taxable income from their jointly filed tax returns; the 4th Circuit rejects the taxpayers’ claims that they did not “knowingly” underreport their income.

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