A North Carolina Closing Agreement is a legal document that provides a resolution between the North Carolina Department of Revenue (ACTOR) and taxpayers regarding disputed tax liabilities. It serves as a means to reach a settlement and resolve any pending tax issues. In essence, a Closing Agreement is an agreement between the ACTOR and the taxpayer to settle a tax dispute or controversy. It outlines the terms and conditions under which both parties agree to accept a defined resolution and bring an end to the dispute. Typically, these agreements are reached when taxpayers challenge the ACTOR's tax assessment or determination and wish to find a mutually agreeable solution. Multiple types of North Carolina Closing Agreements exist, designed to address different tax-related issues and circumstances. Some common types include: 1. Individual Income Tax Closing Agreement: This type of agreement is specific to individual taxpayers who have contested their personal income tax liabilities or other related matters. It provides a platform for negotiation and settlement between the taxpayer and the ACTOR. 2. Corporate Income Tax Closing Agreement: Companies and corporations with contested corporate income tax liabilities or other related tax issues can enter into this agreement with the ACTOR. It aims to resolve disputes, establish a final tax liability, and bring closure to the matter. 3. Sales and Use Tax Closing Agreement: This type of agreement focuses on sales and use tax matters, addressing disputes related to sales tax collections, use tax obligations, and other sales-related taxes. 4. Estate and Gift Tax Closing Agreement: Estate and gift taxes in North Carolina can be complicated, and disagreements often arise between the ACTOR and taxpayers. This agreement allows for the resolution of disputes pertaining to estate taxes and the tax implications of gifts. 5. Withholding Tax Closing Agreement: Withholding taxes are an important aspect of proper tax compliance for employers. When disagreements occur regarding withholding tax liabilities, this agreement provides a framework for resolution between the taxpayer and the ACTOR. These are just a few examples of the types of North Carolina Closing Agreements available. Each agreement is tailored to a specific tax issue or controversy, aiming to establish a final resolution that satisfies both the taxpayer and the ACTOR. By entering into a Closing Agreement, taxpayers can avoid costly litigation, reach a compromise, and bring the tax dispute to a close.