§ 105-154. Information at the source returns. - North Carolina Statutes

§ 105‑154.  Informationat the source returns.

(a)        Repealed by SessionLaws 1993, c. 354, s. 14.

(b)        Information Returnsof Payers. – A person who is a resident of this State, has a place of businessin this State, or has an employee, an agent, or another representative in anycapacity in this State shall file an information return as required by theSecretary if the person directly or indirectly pays or controls the payment ofany income to any taxpayer. The return shall contain all information required bythe Secretary. The filing of any return in compliance with this section by aforeign corporation is not evidence that the corporation is doing business inthis State.

(c)        Information Returnsof Partnerships. – A partnership doing business in this State and required tofile a return under the Code shall file an information return with theSecretary. A partnership that the Secretary believes to be doing business inthis State and to be required to file a return under the Code shall file aninformation return when requested to do so by the Secretary. The informationreturn shall contain all information required by the Secretary. It shall statespecifically the items of the partnership's gross income, the deductionsallowed under the Code, and the adjustments required by this Part. Theinformation return shall also include the name and address of each person whowould be entitled to share in the partnership's net income, if distributable,and the amount each person's distributive share would be. The information returnshall specify the part of each person's distributive share of the net incomethat represents corporation dividends. The information return shall be signedby one of the partners under affirmation in the form required by the Secretary.

A partnership that files aninformation return under this subsection shall furnish to each person who wouldbe entitled to share in the partnership's net income, if distributable, anyinformation necessary for that person to properly file a State income taxreturn. The information shall be in the form prescribed by the Secretary andmust be furnished on or before the due date of the information return.

(d)        Payment of Tax onBehalf of Nonresident Owner or Partner. – If a business conducted in this Stateis owned by a nonresident individual or by a partnership having one or morenonresident members, the manager of the business shall report the earnings ofthe business in this State, the distributive share of the income of eachnonresident owner or partner, and any other information required by theSecretary. The manager of the business shall pay with the return the tax oneach nonresident owner or partner's share of the income computed at the ratelevied on individuals under G.S. 105‑134.2(a)(3). The business may deductthe payment for each nonresident owner or partner from the owner or partner'sdistributive share of the profits of the business in this State. If thenonresident partner is not an individual and the partner has executed anaffirmation that the partner will pay the tax with its corporate, partnership,trust, or estate income tax return, the manager of the business is not requiredto pay the tax on the partner's share. In this case, the manager shall includea copy of the affirmation with the report required by this subsection.

(e)        (Effective fortaxable years beginning on or after January 1, 2008) Publicly TradedPartnership. – The information return and payment requirements under thissection are modified as follows for a publicly traded partnership that is describedin section 7704(c) of the Code:

(1)        The informationreturn required under subsection (c) of this section is limited to partnerswhose distributive share of the partnership's net income during the tax yearwas more than five hundred dollars ($500.00).

(2)        The paymentrequirements under subsection (d) of this section do not apply.  (1939, c. 158, s. 328; 1945,c. 708, s. 4; 1957, c. 1340, s. 4; 1967, c. 1110, s. 3; 1973, c. 476, s. 193;c. 1287, s. 5; 1989, c. 728, s. 1.25; 1989 (Reg. Sess., 1990), c. 814, s. 19;1991 (Reg. Sess., 1992), c. 930, s. 2; 1993, c. 314, s. 1; c. 354, s. 14; 1998‑98,s. 69; 1999‑337, s. 26; 2008‑107, s. 28.8(a).)