The NC Department of Revenue announced that, effective May 11, the statute of limitations for assessing a person for unpaid taxes of a business is amended to provide that the period of limitations expires the later of one year after the expiration of the period of limitations for assessing the business entity, one year after a tax becomes collectible from the business, when a taxpayer and the DOR agree on a settlement concerning the amount of tax due, when the DOR sends a notice of final determination concerning an assessment and the taxpayer does not file a timely petition for a contested case hearing on the assessment, when a final decision is issued on a proposed assessment of tax after a contested case hearing, or when the Office of Administrative Hearings dismisses a petition for a contested case for lack of jurisdiction because the sole issue is the constitutionality of a statute and not the application of the statute.

Each responsible person in a business entity is personally and individually liable for the princi-pal amount of taxes that are owed by the business entity. If a business does not pay the amount it owes after the amount becomes collectible, the Secretary may enforce the responsible person’s liability for the amount by sending the responsible person a notice of proposed assessment. This applies to all sales and use taxes collected by the business, all sales and use tax due upon taxable transactions of the busi-ness but upon which if failed to collect the tax, all taxes due from the business but upon which it failed to collect the tax, and all income taxes required to be withheld by the business entity.

The following are responsible persons:

 The president, treasurer, or chief financial officer of a corporation.

 A manager of a corporation, a member or company official of a limited liability company, or a partner in a partnership who has a duty to deduct, account for, or pay taxes.

 A manager of a limited liability company or partnership.

 A partner who is liable for the debts and obligations of a partnership.