Updated: Federal and NC April 15 (and later) Tax Filing and Payment Deadlines Extended to July 15

Update (May 6, 2020): The NCDOR has issued a notice providing that, as a result of new law effective May 4, it will not charge interest from April 15, 2020 through July 15, 2020 on underpayments of individual income, corporate income, and franchise tax on tax returns due to be filed between April 15, 2020, through July 15, 2020.  The relief also applies to estimated income tax payments due between the same dates. Statutes of limitation for obtaining a refund that would have expired during this period are extended until July 15, 2020 and certain tax-related administrative and appeals deadlines are also extended to July 15, 2020.

Update (April 13, 2020):  On April 9, the IRS released Notice 2020-23, which expands the filing and payment relief described below (applicable to income and estimated taxes otherwise due on April 15) to certain federal tax filing and payment obligations otherwise due on or after April 1 and before July 15. Among the additional filings and payments covered by the expanded relief are:

• Quarterly federal estimated income tax payments for individuals and entities otherwise due June 15, 2020
• Income tax returns and payments of fiscal year entities having a due date otherwise falling in the expanded period
• Income tax returns and payments of nonresidents and US citizens and residents living abroad otherwise due June 15, 2020
• Certain exempt organization filings and payments

As of the date of this posting, the North Carolina Department of Revenue (NCDOR) has not similarly extended the deadline for any NC income tax filings and payments otherwise due after April 15. As noted below, even if the NCDOR does conform to the IRS expanded extension period, the NCDOR cannot waive interest on any tax payments made after their original due dates.

Original Post (March 23, 2020): In response to the coronavirus pandemic, the IRS has extended the April 15 filing and payment deadlines with respect to federal income taxes until July 15. The due date of federal income tax returns otherwise due April 15, 2020 has been automatically postponed to July 15, 2020 – taxpayers do not need to file anything to get the extension. In addition, any taxpayer with a federal income tax payment due April 15, 2020 can defer payment of an unlimited amount of taxes until July 15, 2020 without being charged interest or penalties. The relief applies only to (i) federal income tax payments (including payments of tax on self-employment income) due on April 15 with respect to the 2019 tax year, and (ii) federal estimated income tax payments (including payments of tax on self-employment income) due on April 15 with respect to the 2020 tax year (i.e., the first quarterly estimated tax payment). A previous version of this relief did not extend the return filing deadline and capped the amount of tax payments that could be deferred at $1 million ($10 million for corporations).

The North Carolina Department of Revenue (NCDOR) is also extending until July 15 the filing deadline for North Carolina income and franchise tax returns otherwise due April 15. The NCDOR will also waive late payment penalties on income taxes originally due April 15, provided tax is paid by July 15. However, North Carolina law prevents the Department of Revenue from waiving interest, so any North Carolina income tax payments otherwise due April 15 that are made after that date will accrue interest charges even though penalties are waived.  

Not all states and localities have conformed with the extensions granted by the IRS. The situation at the state and local levels remains fluid, and taxpayers are encouraged to consult the website of their applicable state taxing authority or their tax advisors for the latest information.

If you have any questions about this topic, please contact Stacey Brady or Kristin King.