On March 18, 2020, after President Trump issued an emergency declaration under the Stafford Act, as part of the Federal Government response to the COVID-19 pandemic, the Internal Revenue Service (IRS) extended certain 2019 tax payment deadlines until July 15, 2020.
This deferred payment deadline applies to up to $1 million in taxes owed by individuals and non-corporate payers and up to $10 million in taxes owed by corporations. Under the IRS deferred payment plan, those who choose to take advantage of the extended payments deadline will not be charged interest or penalties on those deferred payments as long as the payments are made by the new deadline. IRS Press Release
What Does This Mean for North Carolina?
The North Carolina Department of Revenue (NCDOR), taking the IRS’ lead, has also extended the 2019 tax payment deadline to July 15, 2020. NCDOR Press Release Originally, NCDOR was requiring all taxpayers who wished to take advantage of the payment extension to still request an extension. Now, however, the payment extension is automatic so North Carolina tax payers don’t need to request the extension. There is one very important different difference in the NCDOR plan versus the IRS plan.
While both plans waive penalties for those who take advantage of the extended filing deadline, North Carolina will still charge interest on delayed tax payments. This is because North Carolina law prevents the NCDOR from waiving interest on tax payments except in very limited circumstances involving tax payers in bankruptcy. NCGS § 105-237