Last summer the North Carolina tax office put into effect a plan to collect money that was overdue. Fortunately, the effort went much better than planned and the state now has enough money to make up for a revenue shortfall. By going after corporate entities that owed back taxes and tax penalties, Revenue Secretary Kenneth Lay said that more than $427 million was collected from 236 entities.
The department originally thought that they would be able to bring in at least $150 million. It is safe to say that this number was met and surpassed without any problem. The extra money is coming at a good time as the state is attempting to manage a shortfall of approximately $400 million. Governor Bev Perdue said, “The General Assembly should be pleased with the results we’ve achieved. The people of North Carolina should be pleased.”
To get started, the state contacted 389 corporate taxpayers to see if they would be willing to negotiate the money that they owed. Out of these, 300 agreed to do so. These taxpayers had been fighting with the state over state franchise tax as well as other related sticking points.
Before this plan was put into effect the state had brought in $110 million in five months. As you can see, once the N.C. Department of Revenue moved forward with this effort more and more money began to flow in. If you an individual or business that owes north carolina back taxes give us a call today to file, pay, or settle taxes owed.
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