Individuals and households affected by Tropical Storm Fred that reside or have a business in Avery, Buncombe, Haywood, Madison, Transylvania, Watauga and Yancey counties qualify for federal and state tax relief under notices released by the Internal Revenue Service and the North Carolina Department of Revenue.
Federal tax-filing and tax-payment deadlines falling on or after August 16, 2021, and before December 15, 2021, are postponed through December 15, 2021. Businesses with extensions also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on September 15, 2021 and calendar-year corporations whose 2020 extensions run out on October 15, 2021.
The December 15, 2021, deadline applies to the quarterly estimated tax payment, normally due on September 15 and to the quarterly payroll and excise tax returns normally due on December 15, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on December 15, 2021. Also, penalties on deposits due on or after August 16, 2021, and before August 31, 2021, will be abated as long as the tax deposits were made by August 31, 2021.
The NCDOR will waive any late action penalties assessed against affected taxpayers from August 16, 2021, through December 15, 2021, if the license is obtained, the return is filed, or the tax is paid by December 15, 2021.
Under state law, the Secretary of Revenue is not authorized to waive interest. Interest will be assessed on any tax due from the date the tax was due until the date the tax is paid. Estimated income tax payments due between August 15, 2021, and December 15, 2021, remain due on the statutory due date.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. For additional information, please visit the announcement on the IRS website.
An affected taxpayer that was erroneously assessed a late action penalty and a non-affected taxpayer that cannot meet its filing or payment requirement as a result of Tropical Storm Fred should mail Form NC-5500 to the NCDOR at the address shown on the bottom of the form. Place an “X” in the block beside “natural disaster” and write “Tropical Storm Fred” on top of the form. For additional information, please see the notice on the NCDOR website.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.