On October 25, 2024, the NC Department of Revenue issued Directive TA-24-1. Part II allows taxpayers in eligible counties to request relief from the assessment of interest on unpaid taxes due to Hurricane Helene. Also eligible are those taxpayers whose tax preparer, or the records necessary to meet a tax deadline, are located in a disaster county. Unlike other relief provisions announced previously those seeking relief from interest must request to be an Eligible Taxpayer using Form NC-5502 Special Penalty and Interest Waiver. This form must be filed on or before November 25, 2024.
The following qualifies for interest relief using NC-5502:
- Income and Franchise Tax – September 25, 2024, through May 01, 2025 filings
- Sales and Use Tax – September 2024 tax due November 20, 2024, October 2024 tax due December 20, 2024, 3Q 2024 tax due November 30, 2024
- Withholding Tax – September 2024 tax due November 15, 2024, October 2024 tax due December 15, 2024, 3Q 2024 tax due November 30, 2024
Information needed to complete From NC-5502:
- Taxpayer Information – Name, Social Security number or Employee Identification number, and address.
- Waiver Information – Tax type, period start and end date (this must be within the relief period).
- Explanation – Write “Hurricane Helene” in the space provided.
- Eligible Taxpayer Box – Check the box labeled “Check this box to request the interest relief authorized under the Disaster Recovery Act of 2024-Part II.”
- Signature – Sign and date the form.
You may submit Form NC-5502 online at ncdor.gov, or a paper form can be mailed in.
An eligible taxpayer who did not pay the required amount of estimated income tax during the disaster relief period of September 25, 2024, through May 01, 2024, will generally accrue interest on the underpayment. When filing their 2024 tax return, taxpayers should enter “E” in the “Exception to Underpayment of Estimated Tax” box on the applicable form.
Please contact DMJPS with any additional questions.
Samantha Suozzi, CPA
Samantha Suozzi is a Senior Manager at DMJPS CPAs + Advisors in Tax Services. With a wealth of experience, Samantha focuses on business tax and accounting services, leveraging her experience to a variety of industries, including retails, professional services, and real estate. Throughout her career, she has worked with closely held S-corporations and partnerships, sole proprietorships, high net-worth individuals, trusts, and estates. Certified in both QuickBooks Desktop and Online, Samantha excels in client setup and troubleshooting, serving as a go-to for QuickBooks-related matters. She brings a blend of technical and managerial knowledge to the DMJPS team, nurturing the growth of future accountants through mentorship.
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