Legal Question in Tax Law in North Carolina
I received an audit letter from the NC Department of Revenue. I have to go back 3 years, not a problem; get my tax forms for each year W2s, etc, not a problem. My question is can they ask me about income I've received in other states? I live in SC and work in NC, I also had a business 2 of the 3 years in question but only in SC, I did not do business at all in NC. Can they question me about that business even though it does not pertain to NC taxes?
Asked on 7/22/09, 8:56 pm
1 Answer from Attorneys
Scott Weitz
Weitz Law Firm, PLLC
Short answer-
You are taxed on all income earned, regardless of the state in which it was earned, and taxed on that amount in your state of residence.
Hope this helps.
Answered on 7/23/09, 7:26 pm
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