The North Carolina Department of Revenue is facing a lawsuit alleging that the state tax department is manipulating federal law to its advantage by pocketing profits that should be earmarked for customers and investors.
Georgia-based Monarch Tax Credits charges that the funds in question are owed under renewable energy, historic redevelopment, and mill restoration tax credit programs.
More specifically, the tax department is accused of “initiating burdensome and needlessly drawn-out audits of Monarch’s customers,” the suit charges, adding that all of the unneeded machinations are to the detriment of the company.
“In cases where the department issued decisions, taxpayers were denied credits in an attempt to adopt and misapply federal law,” the suit adds.
The legal filing also asserts that Monarch partnerships invested in nearly 100 projects in total, accounting for a minimum of $900 million in investments.
The case has been assigned to North Carolina Business Court.
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