§ 105-266.2. Refund of tax paid on substantial income later restored. - North Carolina Statutes

§ 105‑266.2.  Refund oftax paid on substantial income later restored.

This section applies to ataxpayer who is subject to the alternative tax under § 1341(a)(5) of the Codefor the current taxable year because the taxpayer restored an item of incomethat had been included in the taxpayer's gross income for an earlier taxableyear. For the purpose of Article 4 of this Chapter, the taxpayer is consideredto have made a payment of tax for the current taxable year on the later of thedate the return for the current taxable year was filed or the date the returnwas due to be filed. The amount of this payment of tax is (i) the amount thetaxpayer's tax under Article 4 for the earlier taxable year was increasedbecause the item of income was included in gross income for that year minus(ii) the amount the taxpayer's tax under Article 4 for the current taxable yearwas decreased because the item was deductible for that year. To the extent thispayment of tax creates an overpayment, the overpayment is refundable in accordancewith G.S. 105‑241.21. (1997‑213, s. 1; 2007‑491, s. 44(1)c.)