Frequently Asked Questions – Trust Tax Recovery Program

 

 

How can a business enter the Program?

Contact an NCDOR representative by calling 1-877-252-4549 or visit one of our service center locations across the state.

Who qualifies for the Program?

Businesses may qualify for the program if all of the following conditions are met:

  • Must have an outstanding balance of trust taxes due
  • Must not have defaulted or had a penalty waiver on this program, the Small Business Counseling Program or the Small Business Taxpayer Recovery Program
  • Not be facing criminal charges or be the subject of a criminal investigation by the NCDOR

Contact a Revenue Officer at one of our service center locations to determine if a business qualifies for this program.

What are trust taxes?

Trust taxes are taxes that are paid by a customer to a seller or withheld from an employee and held in trust by the business until they are filed and paid to the Department of Revenue. The following tax types are trust taxes:

  • Motor vehicle lease and rental
  • Sales and use
  • Scrap tire disposal
  • White goods disposal
  • Withholding

A purchaser's use tax liability due on purchases of tangible personal property, certain digital property, or certain taxable services on which sales and use taxes were not paid at the time of purchase, does not constitute a trust tax. Use taxes collected by a seller on a remote sale shipped to a recipient or a recipient's donee in North Carolina constitutes a trust tax.

Why is the Department making this offer to businesses?

The goal is to help businesses by offering waiver of penalties and fees assessed by NCDOR upon successfully completing the terms of this program.

What is the benefit of entering the Program?

This program will allow the business to pay unpaid or non-filed State taxes to the Department in installments based on predetermined installment agreement terms. Upon full payment of tax and applicable interest, all penalties and the collection assistance fees assessed on the above referenced tax schedules will be waived.

What if I am in the Program and cannot fulfill the terms of the agreement?

Failure to comply with the terms of the agreement will automatically disqualify a business from the program. This will result in the immediate reinstatement of all penalties and fees and could result in forced collection actions without further notice.

How can a business obtain additional information about the Program?