Upon their return from spring break, lawmakers in the House quickly moved this week to adopt legislation supported by NCACPA that would waive the interest accrued on the underpayment of individual income taxes between April 15, 2021, and the extended filing deadline of May 17, 2021.
On Tuesday, the House Finance Committee approved an amendment that rewrites HB 279 and recommended the bill for favorable passage. By Thursday, the bill had unanimously passed on second and third reading on the House floor.
The bill will proceed to the Senate for consideration, where all indications point to it receiving swift approval. In addition to the interest waiver, the bill addresses three other matters:
• Clarifies that Extra Credit Grants and COVID-19 Recovery Rebates are not considered income for purposes of determining eligibility under the elderly or disabled property tax homestead exclusion and the property tax homestead circuit breaker.
• Extends the statute of limitations for obtaining a refund for individual income tax to May 17, 2021, for claims for which the statute expires on or after April 15, 2021, and before May 17, 2021.
• Corrects a typographical error in the recently adopted unemployment insurance bill (S.L. 2021-5).
The Secretary of Revenue already has statutory authority to waive penalties for late payment when the tax deadline is extended, but the authority to waive interest rests with the General Assembly.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.