NC Department of Revenue Sends False Notices

March 22, 2011

The North Carolina Department of Revenue sent out notices to nearly 2,000 taxpayers on March 2nd stating that they owed state taxes for 2008, when they actually did not owe any additional taxes. The error is limited to those taxpayers who claimed the standard deduction in 2008 and who increased their deduction for property taxes or loss after a federal disaster.

The Department of Revenue claims that the notices were sent after the Internal Revenue Service provided them with inaccurate data about federal taxable income on some returns.

This isn’t the first time that inaccurate notices have been sent out. Just last year South Carolina taxpayers were bombarded with notices stating that they owed taxes plus a $1,000 penalty on business withholding accounts that were previously closed.

Remember, just because your states department of revenue sends you a notice that claims you owe them money, it does not necessarily mean that you owe them money!

Contact your tax professional to get the situation cleared up. If you received a notice, refer to Donna’s previously blog entitled “What do you do with IRS notices?