105-239.1. Transferee liability.
(a) Lien and Liability. - Property transferred for an inadequate consideration to a donee, heir, devisee, distributee, stockholder of a liquidated corporation, or any other person at a time when the transferor is insolvent or is rendered insolvent by reason of the transfer is subject to a lien for any taxes owing by the transferor to the State of North Carolina at the time of the transfer whether or not the amount of the taxes has been ascertained or assessed at the time of the transfer. G.S. 105-241 applies to this tax lien. In the event the transferee has disposed of the property so that it cannot be subjected to the State's tax lien, the transferee is personally liable for the difference between the fair market value of the property at the time of the transfer and the actual consideration, if any, paid to the transferor by the transferee.
(b) Procedure. - The Department may proceed to enforce a lien that arises under this section against property transferred by a taxpayer to another person or to hold that person liable for the tax due by sending the person a notice of proposed assessment in accordance with G.S. 105-241.9. The Department has the burden of establishing that a person to whom property was transferred is liable. The period of limitations for assessment of any liability against a transferee or enforcing the lien against the transferred property expires one year after the expiration of the period of limitations for assessment against the transferor.
(c) Proceeds. - When property transferred by a taxpayer to another person is sold to satisfy the lien that arises under this section, the person is entitled to receive from the proceeds of the sale the amount of consideration, if any, the person paid for the property. The proceeds must be applied for this purpose before they are applied to satisfy the lien.
(d) Repealed by Session Laws 2007-491, s. 27, effective January 1, 2008. (1957, c. 1340, s. 10; 1973, c. 476, s. 193; 1993, c. 450, s. 11; 2007-491, s. 27; 2011-284, s. 69.)
Structure North Carolina General Statutes
North Carolina General Statutes
Article 9 - General Administration; Penalties and Remedies.
§ 105-228.90 - Scope and definitions.
§ 105-230 - Charter suspended for failure to report.
§ 105-231 - Recodified as the second paragraph of § 105-230 by S.L1998-212, s29A.14(k).
§ 105-232 - Rights restored; receivership and liquidation.
§ 105-235 - Every day's failure a separate offense.
§ 105-236 - Penalties; situs of violations; penalty disposition.
§ 105-236.1 - Enforcement of revenue laws by revenue law enforcement agents.
§ 105-237 - Waiver; installment payments.
§ 105-237.1 - Compromise of liability.
§ 105-239.1 - Transferee liability.
§ 105-240 - Tax upon settlement of fiduciary's account.
§ 105-240.1 - Agreements with respect to domicile.
§ 105-241 - Where and how taxes payable; tax period; liens.
§ 105-241.01 - Electronic filing of returns.
§ 105-241.6 - Statute of limitations for refunds.
§ 105-241.7 - Procedure for obtaining a refund.
§ 105-241.8 - Statute of limitations for assessments.
§ 105-241.9 - Procedure for proposing an assessment.
§ 105-241.10 - Limit on refunds and assessments after a federal determination.
§ 105-241.11 - Requesting review of a proposed denial of a refund or a proposed assessment.
§ 105-241.12 - Result when taxpayer does not request a review.
§ 105-241.13 - Action on request for review.
§ 105-241.13A - Taxpayer inaction.
§ 105-241.14 - Final determination after Departmental review.
§ 105-241.15 - Contested case hearing on final determination.
§ 105-241.16 - Judicial review of decision after contested case hearing.
§ 105-241.17 - Civil action challenging statute as unconstitutional.
§ 105-241.19 - Declaratory judgments, injunctions, and other actions prohibited.
§ 105-241.20 - Delivery of notice to the taxpayer.
§ 105-241.21 - Interest on taxes.
§ 105-241.22 - Collection of tax.
§ 105-241.23 - Jeopardy assessment and collection.
§ 105-242.1 - Procedure for attachment and garnishment.
§ 105-242.2 - Personal liability when certain taxes not paid.
§ 105-243 - Taxes recoverable by action.
§ 105-243.1 - Collection of tax debts.
§ 105-244.1 - Cancellation of certain assessments.
§ 105-244.2 - Expired pursuant to its own terms, effective January 1, 2010.
§ 105-244.3 - Sales tax base expansion protection act.
§ 105-244.4 - Reduction of certain sales tax assessments.
§ 105-245 - Failure of sheriff to execute order.
§ 105-246 - Actions, when tried.
§ 105-247 - Municipalities not to levy income and inheritance tax.
§ 105-248 - Purpose of State taxes.
§ 105-250 - Law applicable to foreign corporations.
§ 105-251 - Information required of taxpayer and corrections based on information.
§ 105-251.2 - Compliance informational returns.
§ 105-254 - Secretary to furnish forms.
§ 105-254.1 - Identification of veterans on income tax form D-400.
§ 105-255 - Secretary of Revenue to keep records.
§ 105-256 - Publications prepared by Secretary of Revenue; report on fraud prevention progress.
§ 105-256.1 - Corporate annual report.
§ 105-257 - Department may charge fee for report or other document.
§ 105-258.1 - Taxpayer interviews.
§ 105-258.2 - Taxpayer conversations.
§ 105-258.3 - Power of attorney.
§ 105-259 - Secrecy required of officials; penalty for violation[Effective until January 1, 2023]
§ 105-260 - Evaluation of Department personnel.
§ 105-260.1 - Delegation of authority to hold hearings.
§ 105-261 - Secretary and deputies to administer oaths.
§ 105-262.1 - Rules to exercise authority under G.S105-130.5A.
§ 105-263 - Timely filing of mailed documents and requests for extensions.
§ 105-264 - Effect of Secretary's interpretation of revenue laws.
§ 105-264.1 - Secretary's interpretation applies to local taxes that are based on State taxes.
§ 105-264.2 - Publication of written determinations.
§ 105-266.2 - Refund of tax paid on substantial income later restored.
§ 105-268 - Reciprocal comity.
§ 105-268.1 - Agreements to coordinate the administration and collection of taxes.
§ 105-268.2 - Expenditures and commitments authorized to effectuate agreements.
§ 105-268.3 - Returns to be filed and taxes paid pursuant to agreements.
§ 105-269 - Extraterritorial authority to enforce payment.
§ 105-269.1 - Local authorities authorized to furnish office space.
§ 105-269.3 - Enforcement of Subchapter V and fuel inspection tax.
§ 105-269.4 - Election to apply income tax refund to following year's tax.
§ 105-269.5 - Contribution of income tax refund to Wildlife Conservation Account.
§ 105-269.13 - Debts not collectible under North Carolina law.
§ 105-269.14 - Payment of use tax with individual income tax.