On March 31, 2020, the North Carolina Department of Revenue released a notice announcing a further extension to the waiver of the penalties for failure to file or pay state taxes governed by the Department, including income tax withholding, if the failure is the result of COVID-19. The extension deadline, previously April 15, 2020, is now July 15, 2020. (Important notice: Department of Revenue expands penalty relief for taxpayers affected by Coronavirus Disease 2019 (COVOID-19; EY Payroll Newsflash Vol. 21, #083, 3-20-2020).)

The waiver applies to the failure to timely obtain a license, file a return, or pay a tax that is due between March 15, 2020, and July 15, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by July 15, 2020.

The extension applies to the February 2020 - June 2020 withholding tax deadlines for monthly and semiweekly filers with withholding payments due until July 15, 2020 (see the Department's tax calendar).

State law prevents the Department from waiving any interest, including interest assessed for the underpayment of estimated tax, except in the limited case of interest on taxes imposed prior to or during a period for which a taxpayer has declared bankruptcy under Chapter 7 or Chapter 13 of Title 11 of the United State Code.

Unlike the previous notice extending tax deadlines to April 15, 2020, taxpayers do not need to request a penalty waiver to qualify for the extended relief. However, if a taxpayer receives a proposed assessment of a penalty covered by the relief granted in this notice, the taxpayer should contact the Department by phone, at +1 1 877 252 3052 (currently, Department representatives are not available by phone due to COVID-19), or by writing to the Department at the following address: North Carolina Department of Revenue, Customer Service, P.O. Box 1168, Raleigh, NC 27602.

The penalty waiver notice may be updated as new information becomes available. For more information, call + 1 877 252 3052 to speak to a customer service representative or write to North Carolina Department of Revenue, Customer Service, P.O. Box 1168, Raleigh, NC 27602.

Another notice similarly extends the deadlines for excise taxes.

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EY Payroll News Flash