The US Internal Revenue Service (IRS) announced on 17 April 2025 that, due to the lingering effects of Hurricane Helene on North Carolina, the IRS would further postpone, until 25 September 2025, certain tax filing and payment deadlines for affected taxpayers.

The North Carolina Department of Revenue has issued state penalty relief for taxpayers impacted by the devastating effects of Hurricane Helene.

This notice announces that the department will remove late action penalties assessed against affected taxpayers for licenses, returns, or payments due on 25 September 2024, through 25 September 2025, if the license is obtained, the return is filed, or the tax is paid by 25 September 2025 (State Penalty Relief).

Who qualifies for State Penalty Relief 

State Penalty Relief applies to all Affected Taxpayers. For purposes of this notice, Affected Taxpayers include:

  • Individuals who live in North Carolina.
  • Businesses (including tax-exempt organisations) whose principal place of business is in North Carolina.
  • Other individuals and businesses whose records are necessary to meet a State tax deadline are located in North Carolina.
  • Relief workers who are assisting in North Carolina and are affiliated with a recognised government or philanthropic organisation.
  • Any individual visiting North Carolina who was killed or injured as a result of Hurricane Helene.

State Penalty Relief 

Except as noted below, the Department will remove certain penalties assessed against Affected Taxpayers for licenses, returns, or payments due between 25 September 2024 through  25 September 2025, if the license is obtained, the return is filed, or the tax is paid by 25 September 2025.

The penalties that qualify for relief (collectively, “Late Action Penalties”) are as follows:

  • Failure to obtain a license,
  • Failure to file a return,
  • Failure to pay tax when due, and
  • Failure to submit an informational return for licenses, filings, or payments due between 25 September 2024 and 25 September 2025 will not incur penalties if the license is obtained, the return is filed, or the tax is paid by 25 September 2025.

Exception to State Penalty Relief 

  • Affected Taxpayers that the Department has notified that they are required to pay State withholding tax by the date set by the IRS for depositing federal employment taxes on those same wages (i.e., a semiweekly taxpayer) will only receive State Penalty Relief on tax payments due on or after 25 September 2024, and before 10 October 2024, if the payments were made by 10 October 2024.
  • State Penalty Relief does not apply to tax payments that were due to be paid prior to 25 September 2024. For instance, an Affected Taxpayer who under the disaster declaration has until 25 September 2025, to file a calendar year 2023 individual income tax return (“2023 Tax Return”) will not receive a waiver of the failure to pay tax when due penalty because the tax payment related to the 2023 Tax Return was due on 15 April 2024.