North Carolina will provide state tax relief for taxpayers affected by Hurricane Florence.
Type of State Relief Offered
The Department of Revenue will waive penalties assessed against affected taxpayers for any late action occurring on or after September 7, 2018 through January 31, 2019.
A “late action” is a failure to:
- obtain a license;
- file a return; or
- pay a tax when due.
The waiver will be considered a waiver for automatic reasons and will not be considered a waiver for good compliance. A good compliance waiver can only be granted once every three years per tax type.
Affected counties are:
- New Hanover;
- Sampson; and
Taxpayers Outside Affected Counties
A taxpayer not located in a disaster county can request a waiver of penalties. The waiver will apply to a late action occurring within 3 months after the date of the natural disaster.
If a non-affected taxpayer is unable to timely file a tax return or pay tax due because of the natural disaster, such a taxpayer must provide supporting documents. The documents must support the taxpayer’s claim that Hurricane Florence was the cause for the late action.
Assessment of Interest
Interest will be assessed from the date the tax was due until the date the tax is paid for any late action.
Are There Exceptions?
North Carolina’s waiver of penalties for failure to file or failure to pay will apply to quarterly, monthly, and semiweekly filers. The waiver will apply to taxpayers who:
- file withholding returns; and
- pay the tax due by January 31, 2019.
The waiver will not apply to those who remit an average of $20,000 per month in withholding tax and are required to pay electronically.
Affected taxpayers who remit an average of $20,000 per month in withholding tax and are required to pay electronically will receive a waiver for tax due on or after September 7, 2018 and before September 24, 2018. The waiver will apply provided the tax is paid on or before September 24, 2018. Such affected taxpayers who cannot pay the tax by September 24, 2018, and non-affected taxpayers, can request a waiver within three months following the date of the natural disaster.
How Can Taxpayers Request a Waiver?
Any affected or non-affected taxpayer who cannot meet its filing or payment requirements as a result of Hurricane Florence should mail Form NC-5500, Request to Waive Penalties (NC5500), with the late action item to the department. Taxpayers should write “Hurricane Florence” on the top of the late action item and the NC-5500. The NC5500 is available at all department offices and on the department’s website at http://www.ncdor.gov.
All taxpayers requesting waiver of the penalties as a result of Hurricane Florence should place an “X” in the block beside “natural disaster” on the NC-5500. An affected or non-affected taxpayer that does not have access to this form can attach a letter explaining the reason for the late action. The letter should contain the taxpayer’s:
- SSN or FEIN;
- account ID;
- tax type;
- tax period; and
- name of disaster county.
If the NC-5500 is not sent with the late action item or if the application, return, or payment is submitted to the Department electronically, the NC-5500 or a letter containing the required information can be submitted later if the taxpayer is assessed a penalty. The NC-5500 or letter should be mailed to the North Carolina Department of Revenue, Customer Service, PO Box 1168, Raleigh, NC 27602.
Important Notice: Tax Relief for Victims of Hurricane Florence, North Carolina Department of Revenue, September 17, 2018