Important Alert: North Carolina Announces Tax Relief for Taxpayers Impacted by Hurricane Ian
On Friday, October 7, 2022, the North Carolina Department of Revenue (NCDOR) issued a notice entitled ‘Important Notice: Tax Relief for Victims of Hurricane Ian’. While the notice does provide some relief to North Carolina taxpayers, the relief is more limited than what was granted by the IRS for federal tax purposes earlier this week.
The notice states that North Carolina tax returns or tax payments that have a due date (original or extended) falling between September 28, 2022 and February 15, 2023 will not be subject to the states failure to file or failure to pay penalties, if the return is filed or the tax is paid by February 15, 2023.
The NCDOR is unable to waive interest associated with any late payments; therefore, any payments that are due within the September 28, 2022 and February 15, 2023 timeframe are still required to be paid by their original or extended due dates (without this relief) in order to avoid interest accruing on the payment from the date it was originally due. This applies to all estimated income tax payments that are due within this timeframe as well. Therefore, unlike the relief provided by the IRS related to federal estimated tax payments, North Carolina estimated tax payments should continue to be made as originally scheduled.
Similar to the relief granted by the IRS, this relief applies to all taxpayers who reside in or whose principal place of business is located within North Carolina.
Please note that it is not clear at this time if the NCDOR will be automatically waiving these penalties or if taxpayers will be required to file Form NC-5500, Request to Waive Penalties in order to have these penalties removed from their account.
Click Here – for more information about the tax relief provided by the IRS for federal tax purposes.
As always, please do not hesitate to reach out to your trusted BRC tax advisor with any questions.
