Oct. 16, 2024

NC Disaster Recovery Act

An interest waiver is enacted for North Carolina withholding, franchise, corporate income, and personal income tax purposes under the Disaster Recovery Act of 2024.

Withholding taxes interest waiver. The Secretary of Revenue will waive the accrual of interest for an underpayment of withheld taxes by a taxpayer located in any county declared a major disaster by President Biden under the Stafford Act as a result of Hurricane Helene and Nash County in North Carolina:

for an underpayment of tax due on a quarterly return for the third calendar quarter of 2024, the amount of interest accrued from October 31, 2024, through November 30, 2024, so long as the payment is made on or before November 30, 2024;
for an underpayment of tax due on a monthly return for September 2024, the amount of interest accrued from October 15, 2024, through November 15, 2024, so long as the payment is made on or before November 15, 2024; and
for an underpayment of tax due on a monthly return for October 2024, the amount of interest accrued from November 15, 2024, through December 15, 2024, so long as the payment is made on or before December 15, 2024.

Franchise, corporate income, and individual income tax interest waiver. The Secretary of Revenue will waive the accrual of interest from September 25, 2024, through May 1, 2025, on an underpayment of tax imposed on a franchise, corporate income, or individual income tax return, including a partnership and estate and trust tax return, due on September 25, 2024, through May 1, 2025, for a taxpayer that resides in any county declared a major disaster by President Biden under the Stafford Act as a result of Hurricane Helene and Nash County in North Carolina. The relief from accrual of interest includes interest imposed for underpayment of estimated income tax.

Taxed partnership and S corporation election. The election for partnerships or S Corporations for tax year 2023 will be considered timely on an annual return due after September 25, 2024, and before May 1, 2025, if the election is made on a return filed on or before May 1, 2025. (S.L. 2024-51 (H.B. 149), Laws 2024, effective October 10, 2024).

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