North Carolina recently released a notice which details a temporary reduction in the penalties for late tax payments to the state. According to the notice which was officially released June 30, 2022, the 2021 General Assembly enacted legislation to change the calculation of the penalty from the flat rate of ten percent (10%) to a graduated rate, which was supposed to take effect for taxes on or after July 1, 2022.
On June 29, 2022, the Governor signed Session Law 2022-13, which had several effects: The 10% rate is to continue through December 2022; the Penalty rate will be temporarily reduced to five percent (5%) from January 2023 to June 2024; the graduated penalty rate will be reintroduced in July 2024.
To view the full notice, click here.
