COVID-19 North Carolina Penalty Waivers

Mar 19, 2020

On March 10, 2020, Governor Roy Cooper signed Executive Order 116 declaring a state of emergency in response to COVID-19. The Secretary has become aware that, because of COVID-19, some taxpayers may not be able to meet certain filing or payment requirements.

In response, the Secretary has elected to waive the following penalties for failing to obtain a license, to file a return, or to pay taxes:

· The penalty for failure to obtain a license (G.S. 105-236(a)(2);

· The penalty for failure to file a return (G.S. 105-236(a)(3));

· The penalty for failure to pay tax when due (G.S. 105-236(a)(4)); and

· The penalties regarding informational returns (G.S. 105-236(a)(10)) (collectively, “Late Action Penalties”).

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 March 31, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by April 15, 2020.