The North Carolina Department of Revenue has issued an important notice regarding the extension of time to file franchise and corporate income tax returns. This notice addresses significant updates, including changes to the North Carolina Administrative Code and the process for corporate taxpayers to obtain a seven-month extension.
Background
The Secretary of Revenue (the “Secretary”) has the authority to extend the time for filing tax returns. Corporate taxpayers who require more time to file must comply with specific requirements set forth by the Secretary.
What Has Changed
On October 30, 2024, the Rules Division of the Office of Administrative Hearings adopted a modification to North Carolina Administrative Code section 05C .2004. This change grants corporate taxpayers an additional month to file their franchise and corporate income tax returns with the Department. As a result, corporate taxpayers now have seven months from the original due date to submit their returns.
This new rule takes effect for tax years beginning on or after January 1, 2025.
How Does a Corporate Taxpayer Obtain a Seven-Month Extension
For tax years beginning on or after January 1, 2025, corporate taxpayers who cannot file their returns by the original due date may receive a seven-month extension to file with the Department. Typically, the original due date for filing a corporate return is the 15th day of the fourth month following the close of the income year.
Notably, if a corporate taxpayer is granted an automatic extension to file its federal income tax return, they will also be automatically granted a seven-month extension to file their state corporate return. This is contingent on the corporate taxpayer certifying on their state return that they received an automatic federal extension.
In cases where a corporate taxpayer does not receive an automatic federal extension, they can obtain a state extension by filing Form CD-419, Application for Extension Franchise and Corporate Income Tax, by the original due date of the corporate return.
Corporate taxpayers are advised to refer to the Corporate Income, Franchise, and Insurance Tax Bulletin and the Department’s website for further information regarding extensions of time to file their returns.
Let Murray Moyer PLLC Help You Navigate Tax Season
Navigating these changes can be complex, especially if you’re dealing with unique tax circumstances. At Murray Moyer PLLC, we specialize in helping individuals and businesses in Raleigh and beyond manage their tax issues and financial records with confidence.
Contact us today to schedule a consultation and take the stress out of tax season. Let us help you make the most of the new tax adjustments while keeping your finances in order.
Written by Justin Moyer on February 19, 2025.