Audit for suspected income of $30,0000+ in a state only worked 1 month?

If he worked for a month in NC after moving there, he should have filed a part year resident return there for 2007, uming that NC is like many other states. I would fill out a 2007 part year resident form and see what he really should owe. Perhaps they are uming all his 2007 income was from NC, since he didn't file any return with them. After a filled out the return, I would contact the NC taxing agency and explain the situation. I ume he would owe interest and penalties to NC for not filing or paying, but nowhere near what they calculated.