North Carolina DOR issues guidance on Secretary's combination power, statutory authority for assessments

On July 14, 2011, the North Carolina Department of Revenue issued a notice regarding how it intends to apply recently enacted legislation authorizing the Secretary of Revenue to make adjustments or require combination when intercompany transactions lack economic substance or are not at fair market value. The notice outlines the Secretary's authority under the new law and puts forth a timeline for the application of the new law, prior law, and "other law" to proposed assessments. [Important Notice Regarding the Secretary's Authority to Adjust the Net Income of a Corporation or to Require a Corporation to File a Combined Return, issued 7/14/11]

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