Q. Extension of Time for Filing Return (G.S. 105-263)

  1. Application For Extension (Section .2004)
    An extension of time to file the franchise and income tax return may be granted for seven (7) months providing an extension application is timely filed and the corporation's records reflect no delinquent returns or outstanding tax liability.

  2. Form to be Used
    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 application should be completed in duplicate. The original should be filed with the corporate income and franchise tax division on or before the fifteenth day of the third month following the close of the income year and the duplicate copy attached to the return when filed. An approved copy of the application will not be returned to the taxpayer.

  3. Payment Due
    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 under G.S. 105-236 will be original due date. In addition, interest at the statutory rate established under G.S. 105-241.1(i) is accrued from the original due date to the date the tax is paid.