A BILL TO BE ENTITLED
AN ACT to ensure that taxpayers are not subjected to penalties for requesting a hearing or for failing to file a return in a manner that is prohibited by law.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑236(a)(4) reads as rewritten:
"(4)	Failure to Pay Tax When Due. – In the case of failure to pay any tax when due, without intent to evade the tax, the Secretary shall assess a penalty equal to ten percent (10%) of the tax, subject to a minimum of five dollars ($5.00). This penalty does not apply in any of the following circumstances:
a.	When the amount of tax shown as due on an amended return is paid when the return is filed.
b.	When the Secretary proposes an assessment for tax due but not shown on a return and the tax due is paid within 45 days after the later of the following:
1.	The date of the notice of proposed assessment of the tax, if the taxpayer does not file a timely request for a Departmental review of the proposed assessment.
2.	The date the proposed assessment becomes collectible under G.S. 105‑241.22, if the taxpayer files a timely request for a Departmental review of the proposed assessment.
c.	When a taxpayer files a consolidated return under G.S. 105‑130.6 at the request of the Secretary and the tax due is paid within 45 days after the later of the following:
1.	The date the consolidated return is filed, if the taxpayer does not file a timely request for a Departmental review of the tax.
2.	The date the Departmental review of the tax ends as a result of the occurrence of one of the actions listed in G.S. 105‑241.22(3) through (6), if the taxpayer files a timely request for a Departmental review."
SECTION 2.  G.S. 105‑236(a)(5) is amended by adding a new sub‑subdivision to read:
"(5)	Negligence. –
…
f.	Consolidated return. – The amount of tax shown as due on a consolidated return requested by the Secretary under G.S. 105‑130.6 is not considered a deficiency and is not subject to this subdivision."
SECTION 3.  This act is effective when it becomes law and applies to penalties that are assessed and unpaid as of the effective date, penalties that are paid as of the effective date but are based on a tax that is the subject of an administrative or judicial action that is pending on the effective date, and penalties and taxes assessed on or after that date.