An extension of time to file the franchise and income tax return may be granted for six (6) months if the extension application is received timely. Without a valid extension, a return filed after the statutory due date will be delinquent and subject to interest and all applicable penalties provided by law. To receive an extension, taxpayers must file the application by the original due date of the return.

Form CD-419 is the application for extension form that must be filed before an extension of time to file the return can be granted. The form must be filed with the Department on or before the fifteenth day of the fourth month following the close of the income year.

Payment of franchise and income tax due is not required with the extension. An extension of time may be granted even if the request for extension is not accompanied by a payment of the taxes due. However, the extension of time for filing a franchise tax return or an income tax return does not extend the time for paying the tax due. The penalty of ten percent (10%) for failure to pay the tax when due will be applied to any tax not paid by the original due date. In addition, interest at the statutory rate established under G.S. 105-241.21 is accrued from the original due date to the date the tax is paid.

You can apply for an extension and pay your tax online. Go to "eServices" and select "CD-419".

North Carolina does not accept the federal extension in lieu of Form CD-419; therefore, a properly filed federal extension does not constitute a North Carolina extension.