PETITION FOR REVIEW OF FINAL TAX ASSESSMENT
AND REQUEST FOR COLLECTION STAY
(North Carolina Office of Administrative Hearings – Tax Division)
[// GUIDANCE: Replace every bracketed, bolded placeholder before filing. Add or delete sections to reflect the facts of the specific matter.]
Case No.: [TO BE ASSIGNED]
Effective Date: [MM/DD/YYYY]
Petitioner: [TAXPAYER LEGAL NAME], a [STATE] [corporation/LLC/individual/etc.] with principal place of business at [ADDRESS].
Respondent: North Carolina Department of Revenue (“Department”).
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
1.1 Recitals
A. On [DATE OF FINAL DETERMINATION] the Department issued a Final Determination assessing additional tax, penalties, and/or interest against Petitioner in the aggregate amount of $[ASSESSMENT AMOUNT] (the “Assessment”).
B. Petitioner timely files this Petition pursuant to applicable North Carolina tax-appeal procedure to contest the Assessment and to request a statutory stay of collection activity.
C. The North Carolina Office of Administrative Hearings, Tax Division (the “Tribunal”) has subject-matter jurisdiction, and venue is proper.
1.2 Jurisdiction & Governing Law
This proceeding is governed exclusively by North Carolina state tax law, related administrative-procedure rules, and the Tribunal’s local rules (collectively, the “Governing Law”).
2. DEFINITIONS
For ease of reference, capitalized terms have the meanings set forth below. Undefined capitalized terms carry their ordinary legal meaning.
“Assessment” – The tax, penalty, and interest amount identified in the Department’s Final Determination dated [DATE].
“Collection Stay” – The statutory suspension of enforced collection of the Contested Amount while this matter is pending before the Tribunal, subject to the conditions set forth in Section 3.5.
“Contested Amount” – That portion of the Assessment Petitioner disputes, presently $[CONTESTED AMOUNT].
“Department” – The North Carolina Department of Revenue, including its officers, representatives, and assigns.
“Final Determination” – The written notice issued by the Department that constitutes its last administrative action prior to appeal.
“Petitioner” – The taxpayer named above, together with its successors and permitted assigns.
“Tribunal” – The North Carolina Office of Administrative Hearings, Tax Division, or any successor forum of competent jurisdiction.
[// GUIDANCE: Add, delete, or modify definitions to suit the facts and statutes implicated.]
3. OPERATIVE PROVISIONS
3.1 Filing of Petition
Petitioner hereby petitions the Tribunal for a contested-case hearing to review and reverse the Assessment.
3.2 Statement of Jurisdiction
a. The Final Determination was served on [DATE].
b. This Petition is filed within the statutory appeal period of [NUMBER] days.
c. All procedural prerequisites to the Tribunal’s exercise of jurisdiction have been satisfied.
3.3 Statement of Facts
- Background of Audit: [BRIEF DESCRIPTION].
- Issues in Controversy: [List each issue with short heading, e.g., “Sales-Factor Apportionment,” “Exemption for Manufacturing Machinery,” etc.].
- Grounds for Relief: For each issue identified above, specify legal and factual bases for reversal or modification of the Assessment.
[// GUIDANCE: Provide sufficient factual detail to meet the pleading standard; attach schedules/exhibits if necessary.]
3.4 Relief Requested
Petitioner respectfully requests that the Tribunal:
1. Reverse or modify the Assessment as set forth herein;
2. Grant a Collection Stay on the Contested Amount during pendency of this proceeding;
3. Award costs and allowable attorneys’ fees as permitted by law; and
4. Grant such other relief as the Tribunal deems just and proper.
3.5 Conditions Precedent to Collection Stay
a. Undisputed Amount: Petitioner shall remit the undisputed portion of the Assessment, if any, on or before [DATE].
b. Bond or Deposit (if required): If the Governing Law conditions the Collection Stay on a bond or cash deposit, Petitioner shall post such security in the manner and amount required within [__] days of filing this Petition.
c. Failure to Comply: Non-compliance with subsections (a) or (b) constitutes grounds for lifting the Collection Stay.
4. REPRESENTATIONS & WARRANTIES
Petitioner represents and warrants to the Tribunal and the Department that:
4.1 Authority. Petitioner has full power, authority, and capacity to prosecute this appeal.
4.2 Timeliness. This Petition is timely under the Governing Law.
4.3 Accuracy. All factual statements contained herein are, to the best of Petitioner’s knowledge, true and correct.
4.4 Document Production. All relevant documents within Petitioner’s possession, custody, or control will be produced in accordance with discovery rules.
The foregoing representations and warranties shall survive until final disposition of this matter.
5. COVENANTS & RESTRICTIONS
5.1 Affirmative Covenants
a. Cooperation. Petitioner shall reasonably cooperate in scheduling, discovery, and other procedural requirements.
b. Supplementation. Petitioner will promptly supplement the record upon discovery of additional material information.
5.2 Negative Covenants
Petitioner shall not, without prior Tribunal approval, dispose of material assets or records relevant to this dispute in a manner that would prejudice the Department’s ability to collect any final liability.
5.3 Notice Obligations
Petitioner shall notify the Department and the Tribunal within five (5) business days of any change of address, merger, dissolution, or other event that could affect jurisdiction or collection.
6. DEFAULT & REMEDIES
6.1 Events of Default
a. Failure to prosecute this appeal;
b. Failure to comply with a Tribunal order;
c. Failure to maintain any required bond or deposit.
6.2 Cure Period
Except for intentional misconduct, Petitioner shall have ten (10) calendar days after written notice from the Department or Tribunal to cure any default.
6.3 Remedies
Upon default and expiration of any cure period, the Department may move to dismiss the Petition, lift the Collection Stay, and pursue immediate collection of the Assessment. The Tribunal may also impose sanctions, including fees and costs.
7. RISK ALLOCATION
7.1 Indemnification – Burden of Proof
Petitioner acknowledges that, under the Governing Law, the burden of proof rests with the taxpayer. Petitioner agrees to indemnify and hold the Department harmless from any third-party claims arising from Petitioner’s failure to meet that burden.
7.2 Limitation of Liability
The Department’s liability to Petitioner, if any, shall in no event exceed the Contested Amount plus statutorily prescribed interest. Neither party shall be liable for consequential, incidental, or punitive damages.
7.3 Force Majeure
Neither party shall be liable for delays or failures in performance caused by events beyond its reasonable control, provided that the affected party gives prompt written notice and resumes performance as soon as practicable.
8. DISPUTE RESOLUTION
8.1 Governing Law
This matter is governed exclusively by North Carolina state tax statutes and administrative-procedure rules.
8.2 Forum Selection
Any appeal of the Tribunal’s final decision shall be filed in the North Carolina superior courts as provided by law.
8.3 Arbitration
Except as expressly permitted under North Carolina law for limited issues (e.g., discovery disputes), neither party consents to private arbitration of the underlying tax liability.
8.4 Jury Waiver
To the extent a jury trial might otherwise be available, each party knowingly and voluntarily waives the right to trial by jury for any claim arising out of or related to this Petition, recognizing that tax appeals are generally resolved without juries.
8.5 Injunctive Relief
Nothing herein limits either party’s right to seek immediate injunctive or equitable relief to preserve assets, maintain the status quo, or enforce the Collection Stay.
9. GENERAL PROVISIONS
9.1 Amendment & Waiver
This Petition may be amended only by leave of the Tribunal; no waiver is effective unless in writing and approved by the Tribunal.
9.2 Assignment
Petitioner may not assign its rights or delegate its obligations without prior Tribunal approval.
9.3 Successors & Assigns
This Petition binds and benefits the parties and their respective successors and permitted assigns.
9.4 Severability
If any provision is deemed invalid, the remaining provisions remain enforceable, and the invalid portion shall be reformed to the minimum extent necessary to comply with law.
9.5 Integration
This Petition, together with all exhibits and schedules, constitutes the entire statement of Petitioner’s claims and supersedes any prior submissions on the Assessment.
9.6 Counterparts & Electronic Signatures
This Petition may be executed in multiple counterparts, including electronic or facsimile signatures, each of which is deemed an original and all of which together constitute one instrument.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the undersigned affirms under penalty of perjury that the foregoing is true and correct to the best of his or her knowledge, information, and belief.
PETITIONER
[TAXPAYER LEGAL NAME]
By: _______
Name: [AUTHORIZED SIGNATORY]
Title: [OFFICER TITLE]
Date: [MM/DD/YYYY]
[Corporate Seal, if applicable]
[// GUIDANCE: Notarization is generally not required for Tribunal filings, but add acknowledgment language if local rule or best practice dictates.]
RESPONDENT
Receipt acknowledged solely for service purposes.
North Carolina Department of Revenue
By: ____
Name/Title: ____
Date: _________
CERTIFICATE OF SERVICE
I certify that on [DATE] a true and correct copy of the foregoing Petition was served upon the Department’s designated representative by [CERTIFIED MAIL/EMAIL/HAND DELIVERY] in accordance with Tribunal rules.
Signature: _______
Name: [NAME]
Counsel for Petitioner / Pro Se Petitioner
[// GUIDANCE: Attach (1) a copy of the Final Determination, (2) proof of timely filing, and (3) any required bond or deposit documentation as exhibits.]