2005-2006 Corporate Income Tax Technical Bulletins

Index

A B C D E F G H I J L M N O P R S T V W

** The technical bulletins are in Adobe PDF format. Click here for PDF help information.**

 

C

CAP ON TAX CREDITS

Business tax credits (105-129.17(b))…………………………………….   III.C.1.b.

 

CENTRAL OFFICE OR AIRCRAFT FACILITY PROPERTY TAX CREDIT    (105-129.12)……………………………………………   III.B.9.

 

CERTIFIED PUBLIC ACCOUNTANTS

License taxes

   Statewide license for privilege to practice (105-41)……………………... VI.E.1.

 

CHARITIES

Amusements

   License taxes

      Exemption (105-40)………………………………………………….…..   VI.D.

Corporate income tax (105-130.11)………………………………………..   II.T.3.

Exemption from tax (Const. N. C., art. V, §2)……………………………..   II.T.2.

Franchise tax

   Exemptions (105-125)………………………………………………………..  I.L.

 

CHECK CASHING BUSINESS

Privilege taxes

   Loan agency taxation (105-88(a))…………………………………………. VI.G.

 

CHECKS

Bad checks in payment (105-236)……………………………………….   VIII.C.3.

 

CHICKENS

Poultry composting facilities

   Corporate income tax credit (105-130.44)……………………………...   III.A.11.

 

CHIROPODISTS

Licenses

   Statewide license for privilege to practice (105-41)……………………... VI.E.1.

 

CHIROPRACTORS

Licenses

   Statewide license for privilege to practice (105-41)………………….….. VI.E.1.

 

CIGARETTES AND TOBACCO PRODUCTS

Bonds, surety

   Tobacco products tax

      Dealers

         Wholesale dealer or retail dealer (105-113.38)……………………..   V.A.28.

Cigarette tax (105-113.2 - 105-113.4, 105-113.5 - 105-113.33)

   Confiscation

      Non-tax-paid cigarettes (105-113.32)…………………………………   V.A.22.

         Vehicles or vessels transporting (105-113.31(b)……………………   V.A.21.

   Conflict of laws

      Federal constitution and statutes (105-113.8)…………………………..   V.A.8.

   Criminal penalties (105-113.33) …………………………………….…..   V.A.23.

   Distributors

      Licenses.  See within this subheading, “Licenses.”

      Out-of-state distributors

         Examination of books, accounts, and records (105-113.24(b))……..   V.A.18.

         Licenses (105-113.12(c), 105-113.24(d))…………………   V.A.12., V.A.17.

         Service of process

            Secretary of State as attorney for (105-113.24)…………………..   V.A.17.

         Reports (105-113.18) ……………………………………………….   V.A.15.

   Exemptions

      Activities tax in violation of federal constitution and statutes

         (105-113.8)…………………………………………………………...   V.A.8.

      Manufacturers shipping to distributors (105-113.10)…………………   V.A.10.

   Identification of dispensers on vending machines (105-113.17)   ………...V.A.14.

   Imposition of taxes (105-113.5, 105-113.6)   ………………………V.A.5., V.A.6.

   Inventories

      Tax with respect to inventory on effective date of tax increase

         (105-113.7)   …………………………………………………………...V.A.7.

   Levy of taxes (105-113.5, 105-113.6)   ……………………………V.A.5., V.A.6.

   Licenses (105-113.11)   …………………………………………..V.A.2., V.A.11.

      Distributors

         Bond (105-113.13(b))   ……………………………………………….V.A.13.

         Investigation of applicants (105-113.13(a))   …………………………V.A.13.

         Out-of-state distributors (105-113.12(c), 105-113.24(d))   …V.A.12., V.A.17.

         Place of business

            Defined (105-113.12(b))   ………………………………………….V.A.12.

         Required (105-113.12(a))    ..…………………………………………V.A.12.

      Required (105-113.11)    ……..…………………………………………V.A.11.

         Distributors (105-113.12(a))    ………………………………………..V.A.12.

      Unlicensed place of business

         Prohibited (105-113.29)    …………………………………………….V.A.20.

   Manufacturers shipping to distributors

      Exempt (105-113.10)    ………………………………………………….V.A.10.

   Non-tax-paid cigarettes

      Confiscation (105-113.32) …………………………………………...   V.A.22.

         Vehicle or vessel transporting (105-113.31(b))    …………………….V.A.21.

      Possession

         Prima facie evidence (105-113.27(c))    ………………………………V.A.19.

      Prohibited acts (105-113.27, 105-113.31(a))    …………………………V.A.21.

      Sale

         Prohibited acts (105-113.27(a)(b))    ………………………………….V.A.19.

      Transportation (105-113.31(a))    ……………………………………….V.A.21.

         Requirements (105-113.31(b))    …………………………….………..V.A.21.

         Seizure and confiscation of vehicle or vessel (105-113.31(b))    …….V.A.21.

   Out-of-state shipments (105-113.9)    ………………………………………V.A.9.

   Prohibited acts

      Criminal penalties (105-113.33)    ……………………………………V.A.23.

      Non-tax-paid cigarettes (105-113.27, 105-113.31(a))    ……………...V.A.19.

      Records and reports (105-113.30)    …………………………………….V.A.18.

      Unlicensed place of business (105-113.29)    …………………………...V.A.20.

   Records

      Required reports (105-113.26)    ………………………………………..V.A.15.

         Prohibited acts (105-113.30)    ………………………………………..V.A.18.

   Refunds (105-113.21(b))    ………………………………………………...V.A.16.

   Reports

      Required reports (105-113.18)    ………………………………………..V.A.15.

         Prohibited acts (105-113.30)    ………………………………………..V.A.18.

   Scope of tax (105-113.3(a))    ……………………………………………….V.A.1.

   Use tax

      Levy (105-113.6)    ……………………………………………………….V.A.6.

   Vending machines

      Identification of dispensers (105-113.17)    ……………………………..V.A.14.

Conflict of laws

   Cigarette tax

      Federal constitution and statutes (105-113.8)    ………………………….V.A.8.

Corporate income tax

   Credit for cigarette manufacture for export (105-130.45)    ………………III.A.12.

Definitions

   Cigarette tax (105-113.4)    …………………………………………V.A.1., V.A.5.

      Interstate business (105-113.9)    …………………………………………V.A.9.

      Place of business

         Distributors (105-113.12(b))    ………………………………………..V.A.12.

   Tobacco products tax (105-113.4)    ………………………………………...V.A.1.

Inventories

   Cigarette tax

      Tax with respect to inventory on effective date of tax increase

         (105-113.7)    …………………………………………………………..V.A.7.

   Tobacco products

      Recordkeeping requirements (105-113.40)    …………………………...V.A.30.

Licenses

   Cancellation

      Grounds (105-113.4B(a)) ……………………………………………… V.A.3.

      Procedure (105-113.4B(b)) …………………………………………….  V.A.2.

   Cigarette tax.  See within this heading, “Cigarette tax.”

   Duplicate or amended license (105-113.4A(c)) …………………………..   V.A.2.

   Generally (105-113.4A(a)) ……………………………………………….   V.A.2.

   Refund of license taxes (105-113.4A(b)) …………………………………   V.A.2.

   Tobacco products tax

      Wholesale dealer or retail dealer

      Amount of tax (105-113.36)  ……………………………………….   V.A.26.

      Requirement of license (105-113.36) ………………………………   V.A.26.

Master settlement

   Enforcement of tobacco master settlement (105-113.4C) …………………   V.A.4.

Non-tax-paid cigarettes

   Cigarette tax.  See within this heading, “Cigarette tax.”

Purchases

   Tobacco products tax

      Recordkeeping requirements (105-113.40) …………………………...   V.A.30.

Records

   Cigarette tax

      Required records (105-113.26) ……………………………………….   V.A.15.

         Prohibited acts (105-113.30) ……………………………………….   V.A.18.

   Tobacco products tax

      Recordkeeping requirements

         Sales, inventories, and purchases (105-113.40) …………………….   V.A.30.

Reports

   Cigarette tax

      Required reports (105-113.18) ………………………………………..   V.A.15.

         Prohibited acts (105-113.30) ……………………………………….   V.A.18.

Sales

   Tobacco products tax

      Recordkeeping requirements (105-113.40) …………………………...   V.A.30.

Stale or unsalable cigarettes

   Refund (105-113.21(b)) …………………………………………………   V.A.16.

Tobacco products tax (105-113.2 - 105-113.4, 105-113.35 - 105-113.40)

   Dealers

      Wholesale dealer or retail dealer

         Bond requirement (105-113.38) ……………………………………   V.A.28.

         Liability for tax imposed (105-113.35(b)(c)) ……………………… V.A.24.

         License required (105-113.36) ……………………………………...   V.A.26.

            Amount of tax (105-113.36) ……………………………………..   V.A.26.

            Places of business (105-113.36) ………………………………… V.A.26.

         Payment of tax (105-113.37(b)) ……………………………………   V.A.27.

         Recordkeeping requirements

            Sales, inventories, and purchases (105-113.40) ………………….   V.A.30.

         Reporting requirements

            Resale exempt from tax (105-113.37(b)) ………………………...   V.A.27.

   Definitions (105-113.4)

      Place of business (105-113.36) ……………………………………….   V.A.26.

   Form

      Payment of tax (105-113.37(a)) ………………………………………   V.A.27.

   Inapplicability of tax (105-113.35(a)) …………………………   V.A.24., V.A.25.

   Levy of excise tax (105-113.35(a)) ……………………………………...   V.A.24.

   Manufacturer’s option (105-113.35(d)) ………………………………… V.A.24.

   Payment of tax (105-113.37) …………………………………………… V.A.27.

   Reporting requirements

      Payment of tax (105-113.37(a)) ………………………………………   V.A.27.

      Resale exempt from tax (105-113.37(b)) ……………………………..   V.A.27.

   Scope of tax (105-113.3(a)) ……………………………………………… V.A.1.

Tobacco reserve fund

   Enforcement of master settlement (105-113.4C) ………………………… V.A.4.

 

CIRCUSES

Amusement taxes

   Imposition of tax (105-37.1(a)) ………………………………………….   VI.B.1.

 

CIVIC ORGANIZATIONS

Amusement tax exemptions (105-40) ………………………………………   VI.D.

COLLECTION OF TAXES

Actions for recovery of taxes (105-239, 105-243) ……………………...   VIII.A.4.

 

CONFLICT OF LAWS

Cigarettes and tobacco products

   Cigarette tax

      Federal constitution and statutes (105-113.8) ………………………….   V.A.8.

 

CONSERVATION TILLAGE EQUIPMENT

Corporations (105-130.36) ………………………………………………..   III.A.6.

 

CORPORATE INCOME TAX

Affiliated corporations (105-130.6) …………………………………………   II.N.

Air and water transportation corporations

   Allocation and apportionment of income

      Revenue ton-mile (105-130.4(s)) ………………………………………   II.I.2.f.

Air-cleaning devices

   Amortization (105-130.10) …………………………………………………   II.K.

Allocation and apportionment of income(105-130.4(b))

   Air and water transportation corporations (105-130.4(s)) ……………….   II.I.2.f.

   Business income (105-130.4(i))

      Excluded corporations (105-130.4(r)) …………………………………  II.I.2.e.

         Defined (105-130(a4))………………………………………………. II.I.2.e.

      Motor carrier of passengers (105-130.4(p))……………………………   II.I.2.c.

      Motor carriers of property (105-130.4(o))……………………………..   II.I.2.c.

      Payroll factor (105-130.4(k))…………………………………………..   II.I.1.b.

      Property factor (105-130.4(j))……………………….…………………   II.I.1.a.

      Railroad companies (105-130.4(m))………………………………….. II.I.2.a.

      Sales factor (105-130(l))……………………………………………….   II.I.1.c.

      Telegraph companies (105-130.4(q)) …………………………………  II.I.2.d.

      Telephone companies (105-130.4(n))………………………………….   II.I.2.b.

   Interest and net dividends (105-130.4(f)) …………………………….   II.I.1.c.vii.

   Nonbusiness income (105-130.4(c) to (h))

       Intangible property

         Royalties or similar income received from use of (105-130.4(g))..   II.I.1.c.vii.

      Sale or other disposition or real property (105-130.4(e)) ……….     II.I.1.c.vii.     

   Rents and royalties (105-130.4(c)(d)) ………………………………..    II.I.1.c.vii.

   Sale or other disposition of real property (105-130.4(e)) ……………              II.I.1.c.vii. 

Allocation and apportionment procedures …………………………………      II.F.

   Alternate apportionment formula …………………………………………   II.F.2.

   Preliminary statement ………………………………………………….….   II.F.1.

   Statutory procedures for reporting net income or loss to North Carolina....   II.F.3.

      Apportion income to North Carolina ………………………………… II.F.3.e.

      Compute apportionment factors ………………………….…………..   II.F.3.d.

      Determine apportionable income ……………………………………..   II.F.3.c.

      Determine net income everywhere ……………………………………   II.F.3.a.

      Determine nonapportionable income ………………………………… II.F.3.b.

      Determine total income allocable to North Carolina ………………….   II.F.3.f.

      Determine total NC income before deductions for contributions

         to North Carolina donees …………………………………………..   II.F.3.h.

      Determine total net taxable income in North Carolina …………….…   II.F.3.i.

      Percentage depletion deduction before net economic loss deduction…   II.F.3.g.

Amortization

   Air-cleaning devices (105-130.10)………………………………………….   II.K.

   Equipment mandated by OSHA 

      Defined (105-130.10A(b))    ……………………………………………...II.K.3.

      Generally (105-130.10A(a))   ……………………………………………II.K.3.

   Recycling facilities (105-130.10)……………………………………………   II.K.

   Waste treatment facilities (105-130.10)……………………………………..    II.K.

Amortization of bond premiums…………………………………………….     II.L.

   Definition of bond………………………………………………………….   II.L.4.

   Preliminary statement………………………………………………………   II.L.1.

   Taxable bonds……………………………………………………………… II.L.3.

   Tax-exempt bonds………………………………………………………….   II.L.2.

Apportionable and nonapportionable income………………….………….. II.H.

   Application of definitions…………………………………………………. II.H.3.

   Apportionable and nonapportionable income defined……………………..   II.H.2.

   Division of income - In general……………………………………………   II.H.1.

   Proration of deductions related to apportionable and

      nonapportionable income ……………………………………………… II.H.4.

Apportionment factors…………….………………………………………….   II.I.

   General business corporations ……………………………………………...  II.I.1.

      Payroll factor    ……………………………………………………………II.I.1.b.

         Corporations utilizing common paymaster ……………………….   II.I.1.b.viii.

         Denominator    ……………………………………………………….II.I.1.b.vi.

         In general    ……………………………………………………………..II.I.1.b.i.

         Numerator    ………………………………………………………….II.I.1.b.vii.

         Payroll accounting method   …………………………………..……..II.I.1.b.ii.

      Payroll factor includes only apportionable income compensation and

         excludes income to general executive officers    …….……………...II.I.1.b.v.

      The term “compensation” …………………………………………..   II.I.1.b.iii.

      The term “employee”    ……………………………………………….II.I.1.b.iv.

   Property factor    ………………………………………………………….II.I.1.a.

      Averaging property values   …………………………………………II.I.1.a.vii.

      Consistency in reporting    ……………………………………………II.I.1.a.iii.

      In general    …………………………………………………………….II.I.1.a.i.

      Numerator    …………………………………………………………..II.I.1.a.iv.

      Property used for production of apportionable income    ……………..II.I.1.a.ii.

      Rented property    ……………………………………………………..II.I.1.a.vi.

      Valuation of owned property    ………………………………………...II.I.1.a.v.

   Sales factor    ………………………………………………………………II.I.1.c.

      Numerator    …………………………………………………………...II.I.1.c.iv.

      Numerator - Other receipts constituting apportionable income    ……II.I.1.c.vii.

      Sales incidental to general business operations    ……………………..II.I.1.c.ii.

      Sales made in general business operations    …………………………...II.I.1.c.i.

      Sales made in other types of business activity   ….…………………..II.I.1.c.iii.

      Sales to United States government    …………………………………II.I.1.c.vi.

      What sales of tangible property are in this state    …………………….II.I.1.c.v.

   Public utilities, excluded corporations and air or water transportation

            corporations …………………………………………………………...   II.I.2.

      Air or water transportation corporations ………………………………...   II.I.2.f.

      Excluded corporations, including construction contractors and

         other public utilities …………………………………………………   II.I.2.e.

      Motor carriers of property and/or passengers    ……………………………II.I.2.c.

      Railroad companies   ……………………………………………………..II.I.2.a.

      Telegraph companies    ……………………………………………………II.I.2.d.

      Telephone companies    ……………………………………………………II.I.2.b.

Attribution of expenses to nontaxable income and to

      nonapportionable income and property ……………………………….   II.E.

   Direct expenses   ……………………………………………………………II.E.1.

   Expense connected with interest income from US obligations    ……………II.E.3.

   Expenses related to dividends received    ……………………………………II.E.4.

   Interest expense    ……………………………………………………………II.E.2.

   Other expenses attributed to nontaxable income and to

      nonapportionable income and property ………………………………...   II.E.5.

Biomass equipment manufacturing facility

   Construction credit (105-130.28)    ………………………………………...III.A.4.

Chambers of commerce

   Exemption (105-130.11(a)(b))   …………………………………………….II.T.3.

Charities

   Contributions

      Deductions (105-130.9)    …………………………………………...II.C.2., II.J.

   Exemption of charitable corporations (105-130.11(a)(b))    ………………...II.T.3.

Charter

   Suspension

      Reports

         Failure to file (105-230 - 105-232) …………………………………... II.S.1.

Cigarettes and tobacco products

   Credit for cigarette manufacture for export (105-130.45)……………… III.A.12.

Civic leagues

   Exemption (105-130.11(a)(b))…………………………………………….   II.T.3.

Cogenerating power plants

   Credit for construction (105-130.25)……………………………………. III.A.3.

Computation of net income   …………………………………………………..II.C.

   Adjustments to federal taxable income …………………………………… II.C.2.

   Depreciation recapture    …………………………………………………...II.C.3.a.

   International banking facility    …………………………………………….II.C.3.c.

   Preliminary statement    ……………………………………………………...II.C.1.

   Unrealized income from installment sales taxable upon termination

      of business ……………………………………………………………   II.C.3.b.

Condominium associations

   Exemption  (105-130.11(a))    ………………………………………………II.T.3.

Contributions

   Deductions (105-130.9)    ……………………………………………...II.C.2., II.J.

Cooperative associations

   Exemption (105-130.11(a)(b))    ……………………………………………II.T.3.

Corporations subject to the tax, tax rate and allocation requirements …..II.A.

   Corporations operating in interstate commerce …………………………...   II.A.3.

   Corporations required to allocate income …………………………………   II.A.5.

   “Doing business” defined …………………………………………………   II.A.2.

   Domestic and foreign corporations required to file ………………………   II.A.1.

   Tax forms ………………………………………………………………….  II.A.7.

   Tax rate and basis for the tax ……………………………………………... II.A.4.

   When in doubt as to liability ……………………………………………… II.A.6.

Credits

   Cigarettes manufactured for export (105-130.45(b))    …….……………..III.A.12.

      Cap on credit (105-130.45(c))    ……………………………………..III.A.12.c.

      Documentation (105-130.45(d))  ……………………………………III.A.12.b.

   Cogenerating power plants (105-130.25)    ………………………………..III.A.3.

   Conservation tillage equipment    ………………………………………….III.A.6.

      Definition of “conservation tillage equipment” (105-130.36(b))  ….…..III.A.6.

      Generally (105-130.36(a))   ……………………………….…………….III.A.6.

   Creation of jobs in severely distressed county (105-129.8(a))    …………...III.B.4.

      Planned expansion (105-129.8(d))   ……………………………………. III.B.4.

   Gleaned crop    ……………………………………………………………..III.A.7.

      Definitions (105-130.37(b))    …………………………………………III.A.7.b.

      Generally (105-130.37(a))    …………………………………………III.A.7.a.

   Handicapped persons    …………………………………………………….III.A.2.

      Construction of dwelling units for (105-130.22)    ………………………III.A.2.

   Job creation    ………………………………………………………………III.B.4.

      Severely distressed county (105-129.8)    ……………………………….III.B.4.

   Ports authority wharfage and handling charges on exports    ……………...III.A.9.

      Definitions (105-130.41(c))    …………………………………………III.A.9.a.

      Generally (105-130.41(a) & (b))    …………………………………….III.A.9.a.

      Sunset provision (105-130.41(d))    ……………………………………III.A.9.a.

   Poultry composting facility (105-130.44)    ………………………………III.A.11.

   Real property donations (105-130.34)    …………………………………...III.A.5.

   Renewable energy equipment manufacturing facility, construction

         (105-130.28(a)) ……………………………………………………..III.A.4.

      Cap (105-130.28(c))    …………………………………………………III.A.4.c.

      Double credit prohibited (105-130.28(d))    …………………………..III.A.4.d.

   Savings and loan associations    ………………………………………….III.A.10.

      Supervisory fees (105-130.43)    ……………………………………….III.A.10.

   Telephones    ……………………………………………………………….III.A.8.

       Providing service to low-income residential consumers at

         reduced rates (105-130.39) ………………………………………….   III.A.8.

Deduction of contributions    …………………………………………………..II.J.

   Charitable contributions defined    …………………………………………..II.J.2.

   Contributions fully deductible    ……………………………………………..II.J.4.

   Contributions limited to 5% of net income    ………………………………...II.J.3.

   Contributions by corporations allocating net income    ……………………...II.J.5.

   Preliminary statement    ……………………………………………………...II.J.1.

Deductions

   Amortization of equipment (105-130.10) ……………………………...   II.C.2.

   Contributions (105-130.9) …………………………………………… …II.C.2.

   Net economic loss (105-130.8)    …………………………………….II.C.2., II.M.

Definitions (105-130.2, 105-130.4(a))

   Conservation tillage equipment (105-130.36(b))    ………………………III.A.6.b.

   Estimated tax (105-163.38)   ………………….……………………………..IV.A.

   Ports authority wharfage and handling charges on exports

      Credit for (105-130.41(c))  ……………………………………………..III.A.9.

Depreciation

   Recapture of depreciation required under internal revenue code

      Inclusion in state net income (105-130.5(e))   ……………………………II.C.3.

Dissolutions and withdrawals    ……………………………………………….II.R.

   Dissolutions    ……………………………………………………………….II.R.1.

      Administrative dissolution    ……………………………………………II.R.1.a.

      Voluntary dissolution    ………………………………………………II.R.1.b.

   Withdrawals    ………………………………………………………………II.R.2.

Dividends

   Adjustment for expenses related to

      Bank holding companies (105-130.6A(c), (e), (f))   ……………………. II.E.4.

      Credits (105-130.6A (f) to (h))   …………………………………………. II.E.4.

      Electric power holding companies (105-130.6A(d), (g))   ………………. II.E.4.

      Generally (105-130.6A(b))    ……………………………………………..II.E.4.

      Limitation on credits (105-130.6A(h))   ………………………………… II.E.4.

   Allocation and apportionment of income

      Interest and net dividends (105-130.4(f))    ………………………….II.I.1.c.vii.

Domestic international sales corporation    …………………………………..II.V.

   Apportionment of DISC net income    ………………………………………II.V.3.

   Determination of DISC net income    ………….……………………………II.V.2.

   Doing business activities of DISC    ………………………………………..II.V.1.

Estimated tax

   Declaration    …………………………….…………………………………..IV.A.

      Electronic payment

         When required (105-163.40(d))    ……………….………………………IV.G.

      Filing

         Short taxable year (105-163.40(c))    ……………………………………IV.E.

         Time for (105-163.40(a))    ……………………………………………IV.B.2.

      Form of payment (105-163.40(d))    ……………………………………..V.B.1.

      Required (105-163.39(a))    ……………………………………………….IV.A.

   Definitions (105-163.38)    ……………….…………………………………..IV.A.

   Payment of tax

      Overpayment

         Refund (105-163.43) ………………………………………………….   IV.F.

      Underpayment (105-163.41)    …………………………………………….IV.C.

   Penalties

      Underpayment (105-163.41)    …………………………………………….IV.C.

   Refund of overpayment (105-163.43) …………………………………….. IV.F.

   Underpayment

      Penalty (105-163.41(a)) IV.D.

         When not imposed (105-163.41(d))    …………………………………..IV.D.

      Period of underpayment (105-163.41(c))    ………………………………..IV.B.

      What constitutes (105-163.41(b))    ……………………………………….IV.D.

Exempt corporations    …………………………………………………………II.T.

   Corporations conditionally or partially exempt    …………………………...II.T.3.

   Corporations fully exempt    ………………………………………………..II.T.2.

   Limited liability company (LLC)    …………………………………………II.T.7.

   Notification of change in purposes or operations    …………………………II.T.9.

   Organizations exempt from federal income tax but not

      covered by a specific section of the NC statutes    ……………………….II.T.4.

   Preliminary statement    …………………………………………………….II.T.1.

   Proof of exemption    ………………………………………………………..II.T.8.

   Real estate mortgage investment conduits (REMIC)    ..…………………...II.T.6.

   Regulated investment companies and real estate investment trusts    ………II.T.5.

Exemptions

   Organizations exempt (105-130.11(a))    ……………………………………...II.T.

      Conditional exemptions (105-130.11(b))    ……………………………….II.T.3.

Extension of time for filing return    ………………………………………….II.Q.

   Application for extension    …………………………………………………II.Q.1.

   Form to be used    …………………………………………………………..II.Q.2.

   Payment due    ………………………………………………………………II.Q.3.

Federal taxable income

   Additions in determining state net income (105-130.5(a))    ……………….II.C.2.

   Adjustments in determining state net income (105-130.5(a) to (c))    ……...II.C.2.

   Corrections

      Assessment by Secretary of Revenue (105-130.20)    ……………………...II.U.

      Return (105-130.21(a))    …………………………………………………..II.U.

   Deductions in determining state net income (105-130.5(b))    ……………...II.C.2.

Filing of returns and payment of taxes    ……………………………………...II.P.

   Extension of filing date    ……………………………………………………II.P.2.

   Income tax refunds to wildlife fund    ……………………………………….II.P.5.

   Interest and penalties    ………………………………………………………II.P.4.

   Overpayment credited to next year’s tax    …………………………………..II.P.6.

   Payment of taxes    …………………………………………………………...II.P.3.

   Protective refund claim    …………………………………………………….II.P.7.

   Time and place for filing    …………………………………………………..II.P.1.

Foreign corporations

   Applicability of laws (105-150)    ……………………………………I.E.1., II.A.1.

Franchise tax

   General provisions (105-114 - 105-129)

             See FRANCHISE TAX

Fraternal beneficiary societies

   Exemption (105-130.11(a) & (b))    ……………………………………I.L., II.T.3.

Handicapped persons

   Dwelling units for

      Credit for construction of (105-130.22)    ……………………………….III.A.2.

Historic rehabilitation tax credits

   Credit against income tax (105-129.37(a)) ………………………………...   III.E.

Hydroelectric generator manufacturing facility

   Construction credit (105-130.28) ………………………………………..   III.A.4.

Income year

   Change of income year (105-130.15(b))    …………………………………….I.K.

Insurance companies

   Exemption (105-130.11(a))    ……………………………………………….II.T.2.

Intangible property

   Royalties or similar income received from use of

      Allocation and apportionment of income (105-130.4(g))    ………….II.I.1.c.vii.

Interest

   Allocation and apportionment of income

      Interest and net dividends (105-130.4(f))    ………………………….II.I.1.c.vii.

Interest income on government obligations    ………………………………..II.D.

   Mortgage backed certificate guaranteed by federal agencies    ……………..II.D.6.

   North Carolina obligations    ………………………………………………..II.D.1.

   Obligations of federal national mortgage association    ……………………..II.D.5.

   Obligations of other states    …………………………………………………II.D.2.

   Repurchase agreements    ……………………………………………………II.D.7.

   Sales or exchanges    …………………………………………………………II.D.4.

   US obligations    ……………………………………………………………..II.D.3.

Job creation

   Credits

      Job creation in severely distressed county (105-129.8)    ………………..III.B.4.

Merger or consolidation

   Corporation using installment method of reporting income

      (105-130.15(d)) ……………………………………………………… II.C.3.b.

Motor carriers

   Allocation and apportionment of income

      Business income of motor carriers (105-130.4(o) & (p)) …………….. II.I.2.c.

Net economic loss (105-130.8)    ………………………………………………II.M.

Net economic loss carryover    ……………………………………………...…II.M.

   Corporations allocating their net income    …………………………………II.M.6.

   Corporation sustaining loss entitled to deduction    …………………………II.M.7.

   Definition of net economic loss    …………………………………………..II.M.3.

   Differences between North Carolina and federal provisions    ……………..II.M.2.

   Examples    ………………………………………………………………….II.M.8.

   Income not taxable    ………………………………………………………...II.M.4.

   Preliminary statement    ……………………………………………………..II.M.1.

   Procedure for deducting a net economic loss    ……………………………..II.M.5.

Net income

   Computation (105-130.15(a))    ……………………………………………….II.C.

   Federal taxable income

      Adjustments in determining state net income (105-130.2(a) to (c)) …...   II.C.2.

   Recapture of depreciation required under internal revenue code

      Inclusion in state net income (105-130.5(e))    …………………………II.C.3.a.

   Subsidiary and affiliated corporations (105-130.6)    …………………………II.N.

Partnerships .................................................…………………………………   II.O.

Partnership and the corporate partner ……………………………………. II.O.

   Apportionable income or nonapportionable income………………………    II.O.2.

   Reporting partnership net income …………………………………………   II.O.1.

Petition, tax review board

   Allocation and apportionment of income (105-130.4(t)) ………….   I.G.2., II.F.2.

Ports authority

   Credit for ports authority wharfage and handling charges on exports

      Definitions (105-130.41(c)) …………………………………………   III.A.9.a.

      Generally (105-130.41(a), (b)) ………………………………………   III.A.9.a.

      Sunset provision (105-130.41(d)) …………………………………...   III.A.9.a.

Poultry composting facility

   Credit limitations (105-130.44) ………………………………………...   III.A.11.

Qualified subchapter S subsidiaries ………………………………………..   II.X.

   Apportionment factors …………………………………………………….   II.X.3.

   Franchise tax return ……………………………………………………….. II.X.4.

   Parent S corporation nexus ………………………………………………..   II.X.2.

   Preliminary statement ……………………………………………….…….   II.X.1.

   Shareholders ……………………………………………………………….   II.X.5.

Railroads

   Application and apportionment of income

      Business income of railroad companies (105-130.4(m)) ………………    II.I.2.a.

Rapid amortization for qualifying facilities and equipment ……………...   II.K.

   Certification of facilites required ………………………………………….   II.K.2.

   Rapid amortization of air or water pollution abatement, recycling and

      resource recovering, sewage and hazardous wastes facilities ………….   II.K.1.

   Rapid amortization of equipment mandated by OSHA ……………….…..   II.K.3.

Rate of tax (105-130.3) …………………………………………………….   II.A.4.

Real estate investment trust (105-130.12) …………………………….…..   II.T.5.

Real estate mortgage investment conduits

   Exemption (105-130.11(d)) ………………………………………………. II.T.6.

Recycling facilities

   Amortization (105-130.10) …………………………………………   II.C.2., II.K.

Regulated investment companies (105-130.12) ………………….   II.C.2., II.T.5.

Renewable energy equipment manufacturing facility

   Construction credit (105-130.28) ………………………………………...   III.A.4.

Rents and royalties

   Allocation and apportionment of income (105-130.4(c), (d)) ………..   II.I.1.c.vii.

Reporting federal changes …………………………………………………..   II.U.

   Assessments of refunds ……………………………………………………   II.U.2.

   Extent of changes that may be made ………………………………………   II.U.3.

   Fraud provisions on federal changes ………………………………………   II.U.4.

   Requirement for reporting changes ………………………………………..   II.U.1.

Reports

   Failure to report

      Suspension of corporate charter (105-230 - 105-232) ………………….   II.S.1.

Returns (105-130.16(a); 105-130.21(a))

   Consolidated returns for federal income tax purposes (105-130.14) …….   II.N.3.

Savings and loan associations

   Credit for supervisory fees (105-130.43) ……………………………….   III.A.10.

S corporations (105-131, 105-131.1 - 105-131.8)

   Composite return for nonresident shareholders .......……………………... II.W.9.

   Computation of net income for composite returns ............……………… II.W.10.

   Corporate income taxed to shareholders ...................……………………  II.W. 8.

   Corporations required to file ....................………………………………..    II.W.1.

   Election ...............................................………………………….………..    II.W.5.

   Extensions ............................................…………………………………..    II.W.4.

   Forms to be used for filing........................……………………..…………    II.W.2.

   Franchise tax .....................................................…… ………….…………    II.W.7.

   Nonresident shareholder agreement ..................................………………. II.W.6.

   Return and payment due ..................................................………………... II.W.3.

   Shareholders

      Agreements (105-131.7) ..........................................…………………..    II.W.6.

Shareholders

   S corporations

      See within this heading, “ S corporations”

Solar electric equipment manufacturing facility

   Construction credit (105-130.28) …………………………………………   III.A.4.

Subchapter S

   Apportionment factors ........................................…………………………. II.X.3.

   Election .................................................…………………….……………..    II.X.1.

   Franchise tax ..........................................………………………………….    II.X.4.

   Parent S corporation nexus ..............................................……….………... II.X.2.

   Shareholders .......................................................………………………….    II.X.5.

Subsidiary corporations (105-130.6) ………………………………………..   II.N.

Suspensions and reinstatements …………………………………………….      II.S.

   Reinstatement of corporate charter ………………………………………...   II.S.2.

   Suspension of corporate charter ……………………………………………   II.S.1.

Taxable in another state ……………………………………………………..   II.G.

   Definition of taxpayer ……………………………………………………..   II.G.2.

   In general ………………………………………………………………….  II.G.3.

   Preliminary statement ……………………………………………………..   II.G.1.

   When a state has jurisdiction to subject a taxpayer to a net income tax …..   II.G.5.

   When a taxpayer is “subject” to tax ……………………………………….   II.G.4.

Taxable year

   Defined (105-130.2) ……………………………………………………….    IV.A.

Tax credits …………………………………………………………………… II.B.

Telegraph companies

   Allocation and apportionment of income

      Business income of telegraph companies (105-130.4(q)) ……………. II.I.2.d.

Telephone companies

   Allocation and apportionment of income

      Business income of telephone companies (105-130.4(n)) ……………  II.I.2.b.

Thermal electric equipment manufacturing facility

   Construction credit (105-130.28) ………………………………………..   III.A.4.

Transactions between affiliated corporations and consolidated returns …      II.N.

   Consolidated returns ………………………………………………………   II.N.3.

   Deductions for payments and charges must be commensurate with

      goods and services received …………………………………………….  II.N.2.

   Definitions of subsidiary corporation, parent corporation, and

      affiliated corporation …………………………………………………...   II.N.5.

   Preliminary statement ……………………………………………………..   II.N.1.

   Subsidiary and affiliated corporations required to furnish

      information requested by Secretary …………………………………… II.N.4.

   Transactions between affiliated corporations closely examined

      by the Department ……………………………………………………...   II.N.6.

Waste treatment facilities

   Amortization (105-130.10) …………………………………………   II.C.2., II.K.

Wind energy equipment manufacturing facility

   Construction credit (105-130.28) ………………………………………….   III.A.

Withdrawal from state

   Corporation using installment method of reporting income

      (105-130.15(d)) ……………………………………………………… II.C.3.b.

 

CORPORATIONS

Articles of incorporation

   Suspension

      Failure to file tax report or return or pay tax or fee

         Suspension of articles of incorporation (105-230(a)) ………………...   II.S.1.

            Invalidity of acts performed during suspension (105-230(b)) ……..   II.S.1.

            Reinstatement of articles (105-232(a)) …………………………….   II.S.2.

Royalties

   Corporate income tax

       Payments received on use of trademarks

         Option methods of reporting (105-130.7A) …………………………. II.C.2.

COUNTIES

Enterprise tier

   Tax incentives for new and expanding businesses (105-129.3) ……….   III.B.1.b.

License taxes

   General provisions (105.33 - 105-109)

             See PRIVILEGE TAXES

Privilege taxes

   General provisions (105.33 - 105-109)

             See PRIVILEGE TAXES

   Loan agencies (105-88) ……………………………………………………   VI.G.

Tax incentives for new and expanding businesses

   Enterprise tier (105-129.3) ……………………………………………..   III.B.1.b.

 

CREDITS

Corporate income tax

   See CORPORATE INCOME TAX

Historic property rehabilitation tax credits (105-129.35 - 105-129.37) ….   III.E.

 

CREDIT UNIONS

Privilege taxes

   Loan agency taxation

      Exemption of banks, etc. (105-88(b)) …………………………………  VI.G.5.

 

CRIMINAL LAW AND PROCEDURE

Attempt to evade or defeat tax as felony (105-236) …………………...   VIII.C.9.

Cigarettes and tobacco products

   Cigarette tax

      Violations as misdemeanors (105-113.33) …………………………….   V.A.23

Willful failure to file return, supply information or pay tax as misdemeanor

   (105-236)  ………………………………………………………………   VIII.C.9.

 


A B C D E F G H I J L M N O P R S T V W