A BILL TO BE ENTITLED
AN ACT to extend the time period for filing an amended return for income tax liability affected by the combat‑Injured Veterans Tax Fairness Act of 2016.
The General Assembly of North Carolina enacts:
SECTION 1.  Purpose. – The purpose of this section is to extend the statute of limitations for requesting a refund of State income taxes to conform to federal tax treatment of certain disability severance payments that were not considered gross income to veterans with combat‑related injuries and from which the Department of Defense withheld amounts for tax purposes.
SECTION 2.  Extension of Time to File Claim for Refund. – Notwithstanding the general statute of limitations for obtaining a refund of an overpayment of tax under G.S. 105‑241.6(a), a taxpayer who (i) is a veteran that was provided notice pursuant to section 3 of Public Law 114‑292 of an amount of improperly withheld severance payments and (ii) filed an amended federal individual income tax return to recover the amount improperly withheld may apply to the Department of Revenue for a refund of the State individual income tax paid on the amount improperly withheld.
SECTION 3.  Late Refund Request. – A request for a refund under this act must be made to the Secretary of Revenue on or before October 15, 2022. A request for a refund received after that date is barred.
SECTION 4.  This act is effective when it becomes law.