Important Notice: Additional Interest Relief for Victims of Hurricane Helene

The North Carolina Department of Revenue (“Department”) previously announced state tax relief for taxpayers impacted by Hurricane Helene. This state tax relief included interest relief on specific taxes for eligible taxpayers.1

On July 2, 2026, Governor Josh Stein signed Session Law 2026-31. This law permits the Department to waive additional interest on specific taxes for eligible taxpayers (“Additional Interest Relief”).2

• 1

  See the NCDOR Important Notice dated October 11, 2024, and April 23, 2025.

• 2

  See Session Law 2026-31, Part I, Section 1.7(a).

A taxpayer that resides or is located in a county declared a major disaster by the President of the United States under the Stafford Act (P.L. 93-288) as a result of Hurricane Helene (collectively, “Disaster Counties”) is eligible for Additional Interest Relief (“Eligible Taxpayer”) on the specific tax listed below:

• Franchise Tax 
• Corporate Income Tax
• Individual Income (including partnership and estate and trust tax)
• Withholding Tax1

• 1

  For purposes of withholding tax, a taxpayer must be located in a Disaster County to be eligible for Additional Interest Relief.  See Session Law 2026-31, Part 1, Section 13.1(c).

The following counties in North Carolina are designated are Disaster Counties.1 

• Alexander
• Alleghany
• Ashe
• Avery
• Buncombe
• Burke
• Cabarrus
• Caldwell
• Catawba
• Cherokee
• Clay
• Cleveland
• Forsyth
• Gaston
• Graham
• Haywood
• Henderson
• Iredell
• Jackson
• Lee
• Lincoln
• Macon
• Madison
• McDowell
• Mecklenburg
• Mitchell
• Nash
• Polk
• Rowan
• Rutherford
• Stanly
• Surry
• Swain
• Transylvania
• Union
• Watauga
• Wilkes
• Yadkin
• Yancey

• 1

  See Session Law 2024-51, Part IV, Section 4.1(b).

The following describes the Additional Interest Relief:

Franchise and Corporate Income Tax Returns. The Department will waive the accrual of interest from September 25, 2024, through September 25, 2025, (previously, through May 1, 2025), on an underpayment of tax imposed on a franchise and corporate income tax return, due on September 25, 2024, through September 25, 2025, (previously, due on September 25, 2024, through May 1, 2025), for taxpayers that reside or are located in Disaster Counties. The additional interest relief includes interest that accrued on the underpayment of estimated income tax.1 

Individual Income Tax Returns. The Department will waive the accrual of interest from September 25, 2024, through September 25, 2025, (previously, through May 1, 2025), on an underpayment of tax imposed on an individual income tax return, including a partnership and estate and trust tax return, due on September 25, 2024, through September 25, 2025, (previously, due on September 25, 2024, through May 1, 2025), for taxpayers that reside or are located in Disaster Counties. The additional interest relief includes interest that accrued on the underpayment of estimated income tax.2

Withholding Tax Returns. The Department will waive the accrual of interest for an underpayment of withheld taxes by a taxpayer located in a Disaster County for the following withholding tax returns:

• Quarterly Return for 3rd Quarter 2024 (Period Ending September 30, 2024). The Department will waive the accrual of interest from October 31, 2024 through September 25, 2025 (previously through November 30, 2024) provided the payment was made on or before September 25, 2025, (previously, on or before November 30, 2024.)
• Quarterly Return for 4th Quarter 2024 (Period Ending December 31, 2024). The Department will waive the accrual of interest from January 31, 2025, through September 25, 2025, provided the payment was made on or before September 25, 2025.
• Quarterly Return for 1st Quarter 2025 (Period Ending March 31, 2025). The Department will waive the accrual of interest from April 30, 2025, through September 25, 2025, provided the payment was made on or before September 25, 2025.
• Quarterly Return for 2nd Quarter 2025 (Period Ending June 30, 2025). The Department will waive the accrual of interest from July 31, 2025, through September 25, 2025, provided the payment was made on or before September 25, 2025.

Important. The Department is not permitted to waive interest for other types of tax or periods except previously announced interest relief for Hurricane Helene3  and interest on taxes imposed prior to or during a period for which a taxpayer has declared bankruptcy under Chapter 7 or Chapter 13 of Title 11 of the United States Code.4 

• 1

  See N.C. Gen. Stat. §§ 105-163.15.

• 2

  See N.C. Gen. Stat. §§ 105-163.41.

• 3

  See Disaster Related Tax Relief | NCDOR

• 4

  See N.C. Gen. Stat. §§ 105-237(a).

NCDOR will use its records to identify an Eligible Taxpayer. To the extent an Eligible Taxpayer is identified, NCDOR will automatically apply the Additional Interest Relief, in accordance with state law.

An Eligible Taxpayer that was assessed interest subject to the Additional Interest Relief can also request Additional Interest Relief by taking one of the following actions:

• Submit Form NC-5502, Special Penalty and Interest Waiver, and write “Hurricane Helene” in the space provided to explain why interest should be waived. Attach documentation to verify eligibility for Additional Interest Relief.  Note. Form NC-5502 can be submitted electronically using the NCDOR website or by paper. For faster processing, NCDOR recommends submitting Form NC-5502 electronically.
• Call the Department at 1-877-252-3052 (7:00 a.m. until 4:30 p.m. Eastern Time, Monday through Friday) 

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.