§ 105-152. Income tax returns. - North Carolina Statutes

§ 105‑152.  Income taxreturns.

(a)        Who Must File. – Thefollowing individuals shall file with the Secretary an income tax return underaffirmation:

(1)        Every residentrequired to file an income tax return for the taxable year under the Code andevery nonresident who (i) derived gross income from North Carolina sourcesduring the taxable year attributable to the ownership of any interest in realor tangible personal property in this State or derived from a business, trade,profession, or occupation carried on in this State and (ii) is required to filean income tax return for the taxable year under the Code.

(2)        Repealed by SessionLaws 1991 (Reg. Sess., 1992), c. 930, s. 1.

(3)        Any individual whomthe Secretary believes to be liable for a tax under this Part, when so notifiedby the Secretary and requested to file a return.

(b)        Taxpayer Deceasedor Unable to Make Return. – If the taxpayer is unable to file the income taxreturn, the return shall be filed by a duly authorized agent or by a guardianor other person charged with the care of the person or property of thetaxpayer. If an individual who was required to file an income tax return forthe taxable year while living has died before making the return, theadministrator or executor of the estate shall file the return in the decedent'sname and behalf, and the tax shall be levied upon and collected from theestate.

(c)        InformationRequired With Return. – The income tax return shall show the taxable income andadjustments required by this Part and any other information the Secretaryrequires. The Secretary may require some or all individuals required to file anincome tax return to attach to the return a copy of their federal income taxreturn for the taxable year. The Secretary may require a taxpayer to providethe Department with copies of any other return the taxpayer has filed with theInternal Revenue Service and to verify any information in the return.

(d)        Secretary MayRequire Additional Information. – When the Secretary has reason to believe thatany taxpayer conducts a trade or business in a way that directly or indirectlydistorts the taxpayer's taxable income or North Carolina taxable income, theSecretary may require any additional information for the proper computation ofthe taxpayer's taxable income and North Carolina taxable income. In computingthe taxpayer's taxable income and North Carolina taxable income, the Secretaryshall consider the fair profit that would normally arise from the conduct ofthe trade or business.

(e)        Joint Returns. – Ahusband and wife whose federal taxable income is determined on a joint federalreturn shall file a single income tax return jointly if each spouse either is aresident of this State or has North Carolina taxable income and may file asingle income tax return jointly if one spouse is not a resident and has noNorth Carolina taxable income. Except as otherwise provided in this Part, awife and husband filing jointly are treated as one taxpayer for the purpose ofdetermining the tax imposed by this Part. A husband and wife filing jointly arejointly and severally liable for the tax imposed by this Part reduced by thesum of all credits allowable including tax payments made by or on behalf of thehusband and wife. However, if a spouse has been relieved of liability forfederal tax attributable to a substantial understatement by the other spousepursuant to section 6015 of the Code, that spouse is not liable for thecorresponding tax imposed by this Part attributable to the same substantialunderstatement by the other spouse. A wife and husband filing jointly haveexpressly agreed that if the amount of the payments made by them with respectto the taxes for which they are liable, including withheld and estimated taxes,exceeds the total of the taxes due, refund of the excess may be made payable toboth spouses jointly or, if either is deceased, to the survivor alone.

(f)         Repealed bySession Laws 1991 (Reg. Sess., 1992), c. 930, s. 1. (1939, c. 158, s. 326; 1941,c. 50, s. 5; 1943, c. 400, s. 4; 1945, c. 708, s. 4; 1951, c. 643, s. 4; 1957,c. 1340, s. 4; 1967, c. 1110, s. 3; 1973, c. 476, s. 193; c. 903, s. 1; c.1287, s. 5; 1977, c. 315; 1989, c. 728, s. 1.23; 1991 (Reg. Sess., 1992), c.930, s. 1; 1998‑98, ss. 69, 104; 1999‑337, s. 25; 2006‑66, s.24.11(a).)