Important Notice - Extension of Time To File Franchise and Corporate Income Tax Return

Issued by:  Corporate Tax Division

Date:  January 29, 2025
 

The following important information is addressed in this notice: 

  • Background
  • What Has Changed
  • How Does a Corporate Taxpayer Obtain a Seven-Month Extension
Tab/Accordion Items

The Secretary of Revenue (“Secretary”) may extend the time to file a tax return.1 To obtain an extension of time, the taxpayer must comply with certain requirements set by the Secretary.

On October 30, 2024, the Rules Division of the Office of Administrative Hearings adopted a change to North Carolina Administrative Code section 05C .2004 giving taxpayers that receive an extension to file franchise and corporate income tax returns (“Corporate Taxpayers”) with the North Carolina Department of Revenue (“Department”) an additional month to file franchise and corporate income tax returns (“Corporate Returns”). As a result of the change, Corporate Taxpayers that receive an extension have seven months from the original due date to file Corporate Returns. The change to the rule takes effect for tax years beginning on or after January 1, 2025.

 

For tax years beginning on or after January 1, 2025, a Corporate Taxpayer that cannot file its Corporate Return by the original due date of the return may be granted a seven-month extension of time to file the return with the Department. Generally, the original due date to file a Corporate Return is the 15th day of the fourth month following the close of the income year.

Of note, a Corporate Taxpayer that is granted an automatic extension to file its federal income tax return will be automatically granted seven months to file its corresponding Corporate Return provided the Corporate Taxpayer certifies on its Corporate Return that the corporation was granted an automatic federal extension. If the Corporate Taxpayer is not granted an automatic extension to file its federal income tax return, the Corporate Taxpayer may receive a state extension by filing Form CD-419, Application for Extension Franchise and Corporate Income Tax, by the original due date of the Corporate Return. Refer to the Corporate Income, Franchise, and Insurance Tax Bulletin and the Department’s website for additional information regarding extensions of time to file Corporate Returns.

If you have any questions about this notice, you may call the North Carolina Department of Revenue Customer Service line at 1-877-252-3052 (7:00 a.m. until 4:30 p.m. Eastern Time, Monday through Friday), or write to Customer Service, PO Box 1168, Raleigh, NC 27602-1168.

To the extent there is any change to a statute or regulation, or new case law subsequent to the date of this notice, the provisions in this important notice may be superseded or voided. To the extent that any provisions in any other notice, directive, technical bulletin, or published guidance regarding the subject of this notice and issued prior to this notice conflict with this important notice, the provisions contained in this important notice supersede the previous guidance.

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