Contractors Likely to Get Refunds on Overbillings

As many of you know, Carolinas AGC was successful this year in leading efforts to help enact legislation that will result in the construction industry getting refunds concerning overbillings and the franchise tax -- retroactively for the 2007, 2008 and 2009 tax years. This is likely to involve millions of dollars in refunds and follows legislation we were able to get through in 2009, which, effective January 1, 2010, prevents the NC DOR from applying the franchise tax to such overbillings from that date forward.

The NC Department of Revenue advises taxpayers to do the following:

Applying for a Refund: A taxpayer who paid franchise tax on its "billings in excess of costs" liability account for tax years in which the taxes were due in 2007, 2008 or 2009 may request a refund by filing either (1) an amended income and franchise tax return (CD-405 or CD-401S) or (2) Form NC-19, Claim for Refund of Taxes, available at http://www.dor.state.nc.us/downloads/nc19.pdf. Enter "Franchise Tax Paid on Billings in Excess of Costs" in the explanation section of the request for refund. To be considered timely, a request for refund must be received by the Department no later than January 1, 2011. Any requests for refund received after January 1, 2011 are barred.

Meantime, Carolinas AGC, in a joint effort with the NC Association of CPAs, is trying to keep a running tab on companies eligible for the tax refunds as well as how much they are applying for and receiving in refunds. Please email Dave Simpson, NC Building Director  for Carolinas AGC (see contact info below), with related information, as well as any other companies you think are due such refunds.

Carolinas AGC wants to help our members get their tax refunds back quickly, especially in these tough economic times!

For information, contact Dave Simpson, NC Building Director at dsimpson@carolinasagc.org, or Berry Jenkins, NC Highway-Heavy Director, at bjenkins@carolinasagc.org.