North Carolina Provides Storm Tax Relief

North Carolina will provide tax relief for taxpayers affected by severe thunderstorms that occurred on April 15, 2018. The Department of Revenue will waive penalties assessed against taxpayers located in affected counties for failure to timely obtain a license, file a return, or pay a tax that was due on or before April 18, 2018.

In order to get the tax relief, taxpayers must:

  • obtain the license;
  • file the return or an extension application; or
  • pay the tax by May 18, 2018.

Affected Counties

The affected counties are:

  • Alamance;
  • Guilford;
  • Iredell;
  • Mecklenburg; and
  • Rockingham.

Form NC-5500 “Natural Disaster”

When mailing the documentation  for tax relief to the department, taxpayers should include Form NC-5500. Taxpayers should check the box for “natural disaster” and provide all required information.

Taxpayers Outside Affected Counties

The department grants penalty waivers for automatic reasons to a taxpayer that is unable to timely file a tax return or pay tax due because of a natural disaster, such as a tornado or hurricane. A taxpayer that is not in one of the affected counties is also subject to the automatic waiver. However, such a taxpayer must provide documents that support the taxpayer’s claim that the April 15, 2018, tornadoes caused the taxpayer’s failure to timely:

  • get the license;
  • file the return or extension application; or
  • pay the tax.

Applications for Extensions

An individual or corporation generally receives an additional six months to timely file an income or franchise tax return if the application for extension is filed by the statutory due date of the return. Affected taxpayers can file an extension application on or before May 18, 2018. The extended due date to timely file the return remains six months from the statutory due date.

Important Notice: Tax Relief for Victims of April 15, 2018, Tornados, North Carolina Department of Revenue, April 19, 2018

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All stories by: CCHTaxGroup