Penalty Relief Includes Sales and Use and Withholding Taxes
RALEIGH – Secretary of Revenue Ronald G. Penny announced today that the North Carolina Department of Revenue (NCDOR) is expanding tax relief as part of Governor Roy Cooper’s response to the COVID-19 pandemic. The NCDOR will not impose penalties for late filing or payments of many tax types, including sales and use and withholding taxes, through July 15. The NCDOR previously announced tax relief for individuals, corporations, partnerships, trusts, and estates.
“These measures will come as welcome tax relief for individuals and businesses across North Carolina,” Penny said. “We are providing the maximum flexibility under existing state law.”
In the notice issued today, the NCDOR announced that it will not impose penalties for failure to obtain a license, failure to file a return, or failure to pay a tax that is due on March 15, 2020 through July 15, 2020, if the corresponding license is obtained, return is filed, or tax is paid on or before July 15, 2020.
The NCDOR cannot waive interest from the due date under current state law–currently 5% per year, the minimum rate allowed by statute. Additionally, sales and use and withholding taxes are trust taxes and the money collected must be remitted to the state and cannot be used for other purposes.
The relief from Late Action Penalties applies to the following tax types:
- Withholding Tax
• Sales and Use Tax
• Scrap Tire Disposal Tax
• White Goods Disposal Tax;
• Motor Vehicle Lease and Subscription Tax
• Solid Waste Disposal Tax
• 911 Service Charge for Prepaid Telecommunications Service
• Dry-Cleaning Solvent Tax
• Primary Forest Products Tax
• Freight Car Line Companies
• Various Taxes Administered by the Excise Tax Division