Important Notice: Additional Time for Victims of Hurricane Helene to Qualify for Penalty Relief

On October 3, 2024, the North Carolina Department of Revenue (“Department”) announced
state tax relief for taxpayers impacted by Hurricane Helene. This state tax relief removed 
certain “Late Action Penalties” assessed against “Affected Taxpayers” in accordance with 
state law. 

On April 17, 2025, the Internal Revenue Service (“IRS”) announced that due to the lingering 
effects of Hurricane Helene on North Carolina, the IRS would further postpone, until 
September 25, 2025, certain tax filing and payment deadlines for Affected Taxpayers. 
This notice announces that the Department will remove Late Action Penalties assessed 
against Affected Taxpayers for licenses, returns, or payments due on September 25, 2024, 
through September 25, 2025, if the license is obtained, the return is filed, or the tax is paid 
by September 25, 2025 (“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 organizations) whose principal place of business is 
  in North Carolina. 
• Other individuals and businesses whose records 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 recognized government or philanthropic organization.
• Any individual visiting North Carolina who was killed or injured as a result of Hurricane Helene.

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

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

• Failure to Obtain a License (G.S. 105-236(a)(2)) 
• Failure to File a Return (G.S. 105-236(a)(3)) 
• Failure to Pay Tax When Due (G.S. 105-236(a)(4)) 
• Failure to File an Informational Return (G.S. 105-236(a)(10)) 

In addition, except as noted below, Affected Taxpayers that previously received State Penalty 
Relief through February 3, 2025, due to Tropical Storm Debby qualify for State Penalty Relief 
through September 25, 2025. 

• Affected Taxpayers that have been notified by the Department 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 September 25, 2024, 
  and before October 10, 2024, if the payments were made by October 10, 2024.1
• State Penalty Relief does not apply to tax payments that were due to be paid prior to 
  September 25, 2024. For instance, an Affected Taxpayer who under the disaster 
  declaration has until September 25, 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 April 15, 2024.

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  An Affected Taxpayer that is a semi-weekly taxpayer may request penalty waiver if it cannot meet its payment obligations because of Hurricane Helene. The taxpayer should follow the instructions for a taxpayer that is not an Affected Taxpayer in the section “How to Receive State Penalty Relief.”

The Department cannot waive interest except when authorized by the North Carolina General 
Assembly. As a result, this notice does not modify the Secretary’s authority to waive interest 
that accrues on an underpayment of tax imposed on a franchise, corporate income, or 
individual income tax return from September 25, 2024, through May 1, 2025, for taxpayers 
who reside in or (are located in) one of the 39 counties 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.1

For additional details about State Interest Relief, review the Department’s notices issued on 
October 11, 2024, October 18, 2024, and October 30, 2024.

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  See Session Law 2024-51.

Affected Taxpayers that are assessed a Late Action Penalty in error should notify the 
Department of the error by taking one of the following actions:

• Submit Form NC-5500, Request to Waive Penalties, or Form NC-5501, Request for 
  Waiver of an Informational Return Penalty and write “Hurricane Helene” at the top of 
  the form.
• Call the Department at 1-877-252-3052 (7:00 a.m. until 4:30 p.m. Eastern Time, Monday 
  through Friday)

In addition, in accordance with the Department’s Penalty Waiver Policy, a taxpayer that is
not an Affected Taxpayer may request a penalty waiver if Hurricane Helene caused the 
taxpayer to not meet their state filing or payment requirement. These taxpayers can request 
a penalty waiver by submitting either Form NC-5500, or Form NC-5501, whichever is 
applicable. On Part 2, Taxpayers must select “Natural Disaster” as the reason for the request 
and on Part 3, complete the “Natural Disaster” section of the form. 

Note. Form NC-5500 and Form NC-5501 are available on the Department’s website.  However, any taxpayer affected by Hurricane Helene that does not have 
electronic access to Form NC-5500 or Form NC-5501 can call the Department at 1-877-252-
3052 (7:00 a.m. until 4:30 p.m. Eastern Time, Monday through Friday), to request assistance.

G.S. 105-249.2(b) provides that the penalties for failure to obtain a license (G.S. 105-
236(a)(2)), failure to file a return (G.S. 105-236(a)(3)), failure to pay tax when due (G.S. 105-
236(a)(4)), and failure to file an informational return (G.S. 105-236(a)(10)) may not be 
assessed for any period in which the time for filing a federal return or report or for payment 
of a federal tax is extended under section 7508A of the Internal Revenue Code because of 
a presidentially declared disaster. 

G.S. 105-237(a) authorizes the Secretary of Revenue to waive or reduce any penalties 
provided for in Subchapter 1 of Chapter 105. The Department’s Penalty Waiver Policy
authorizes the waiver of penalties for automatic reasons for a taxpayer that is unable to 
comply with the law’s requirements to timely file a tax return or timely pay tax due because 
of a natural disaster, such as a tornado or hurricane. 

G.S. 105-263(c) provides that a person who is granted an automatic extension to file a federal 
income tax return, including a return of partnership income, is granted an automatic extension 
to file the corresponding state income tax return and franchise tax return. Importantly, this provision does not apply when a taxpayer’s federal income tax return is automatically 
extended because of a presidentially declared disaster.