Local Politics

N.C. tax-collection effort nets $427M

Posted January 5, 2010

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— North Carolina tax officials collected $427.2 million in back taxes from scores of businesses in the last six months, Revenue Secretary Ken Lay said Tuesday.

The state stepped up its collection program last July amid a record deficit. Lawmakers even included projections of $150 million in collections in their revenue estimates as they hammered out a two-year budget.

Layoffs threaten state revenue department Hundreds of firms settle tax bills with state

The Department of Revenue targeted 389 corporations with large outstanding tax bills and negotiated settlements with 236, Lay said. Officials didn't identify the companies, but 104 cases involved franchisers and another 11 involved credit card issuers.

Revenue officials say the names of the companies remain confidential because they participated in the resolution program.

Many of the tax bills resulted from disputes over provisions in the state tax code or because the corporations operated through an array of entities inside and outside of North Carolina that makes it difficult to assess how much the firms owe the state.

"There was a fair amount of money associated with those cases, though we kind of exceeded our wildest dreams in terms of how much was able to come through this initiative," said Linda Millsaps, chief operating officer for the Department of Revenue.

Companies that took part in the effort had the penalties for late payments waived, Lay said.

A few of them even got refunds after tax officials and company lawyers resolved their bills, he said.

"I think it's best for everybody," he said. "As an agency, we want to be easy to do business with, which necessitates being able to sit down and dialog with people."

The companies that didn't settle their tax cases will continue their fights with the state, but Lay said his department will no longer offer amnesty on late fees and penalties once those cases are resolved.

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  • Garnerwolf1 Jan 7, 2010

    ech: your first posting said his state didn't have an income tax. Now you're saying he paid tax in another state. Get your story straight. If he was attacked as you say, it's his fault. He apparently falsified his address as you say he used a relatives address. People buy cars every day in other states, then get the licensed and titled in their own state. He's paying the price for not following the rules. The state fails every single day but it's not always their fault.

  • ech Jan 6, 2010

    garnerwolf1. What are you some sort of government guard dog. I noticed that you have put your two cents worth into just about everybody’s comments here. This person was living out of state and paying taxes out of state and was moved here to work as support person while traveling back to his home state and keeping up his home. For some sort of reason his position and pay would not allow him to have a car. And then for the same reason he bought a car and used a family member’s address to get it licensed and insured. Once his taxes came due on the car he was attacked by the nc state tax department and basically treated like some sort of criminal. They tried to say that this was his residence and he owed the state income taxes. I don't blame the guy for buying the car. I wouldn't want to sit around in provided housing all except when i was working either. If he was some sort of politician, I'm sure that he would have been given a lot of lea way with the taw. Thank you

  • Garnerwolf1 Jan 6, 2010

    ech: if the income was earned in NC, it's reportable to NC. There is a reciprocal agreement with other states so that someone is not double taxed, but if the other state doesn't have a state tax, then NC's tax is due. Sounds to me like this person was only trying to get away with not paying tax anywhere.

  • ech Jan 6, 2010

    I see the amount that was collected. Is this a net plus the amount of refunds that were given to some of the other companies or is this a gross amount minus the refunds? I notice that that was not mentioned in this article as it was reported the news yesterday. Plus if some poor person that calls another state home and reports their earnings to that state without a state income tax and then they got a state income tax bill from North Carolina. Did the state negotiate with them the same way. Probably not!!!! I know someone that this happened to. They were actually going to move to North Carolina until this happened to them. Then after being treated like a common criminal they changed jobs and stayed in the state where they were already living.

  • Garnerwolf1 Jan 6, 2010

    While I agree with the sentiment that taxes are higher than they should be (but not nearly as high as they need to be based on expenditures over the last 75 years at the Fed level), and much of it is wasted, be honest. Government, at all levels, IS part of the economy. They employ people, who pay taxes, and buy 'stuff'. There are an awful lot of private companies that feed at the gov't teat.

  • htomc42 Jan 6, 2010

    Headline Translation Service: $427M of productive money removed from economy, thrown down bottomless pit.

  • 6079 SMITH W Jan 6, 2010

    This system of taxing it's citizens to death is comparable to having to feed a pack of hungry wolves every day so you can get to your car to get to work.....and if you can't get to work, you don't have the money to buy wolf-chow...and you don't make it to the car. So let's all do our "patriotic duty" and keep that pack fat and sleek, because the new batch of pups has quite an appetite too.

  • WHEEL Jan 6, 2010

    Revenue. Why wait around until a recession to do your job? Why not collect all the taxes due all of the time like you do from the poor working Joe. Or are you settleing for 25c, 50c, or whatever on the $ just to bring in something for a headline!

  • Garnerwolf1 Jan 6, 2010

    There are laws that prevent disclosure of the names. (Do you want your tax info posted on the 'net?) And while this is a lot of money, it's not more than a few drops in the bucket compared to this state's entire budget.

  • 27615 Jan 6, 2010

    yet the Government still won't have enough money and will try and raise taxes so they continue to spend more money then WE have!

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