North Carolina Grants Tax Relief to Individuals and Businesses
in 15 Mountain Counties Affected by Tropical Depression Frances
RALEIGH – North Carolina will grant tax relief to affected
individuals and businesses in 15 mountain counties who are unable
to file tax returns and make timely payments due to the destruction
caused by Tropical Depression Frances.
The waiver from the N.C. Department of Revenue is similar to relief
granted from the Internal Revenue Service and includes the waiver
of both late filing and payment penalties for a tax return that is
either due to be filed or paid between Sept. 7 and Nov. 9, provided
the return is filed or the tax is paid before Nov. 10. The relief
does not include the waiver of interest, which state law prohibits.
The 15 counties, which have been declared federal disaster areas,
are: Avery, Buncombe, Burke, Caldwell, Haywood, Henderson, Jackson,
Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga
and Yancey. The same relief will also apply to any North Carolina
counties added to the disaster area.
A taxpayer eligible for relief should complete Form NC-5500, Request
to Waive or Reduce Penalties, write “Tropical Storm Frances”
on the top right of Form NC-5500, and check the block for natural
disaster. The form is available at all Department of Revenue offices
and on the agency’s website at: http://www.dor.state.nc.us/downloads/penalty.html.
Send completed Form NC-5500 with the late return or payment. If the
late return is a full-page return, staple Form NC-5500 to the front
of the return. If the return is a coupon-size form, send Form NC-5500
with the return but do not staple the two together.
The Department of Revenue will also suspend forced collection actions,
including the issuance of garnishments, tax warrants and certificates
of tax liabilities, for taxpayers who are unable to pay because of
damage inflicted by Frances. The suspension of forced collection actions
will remain in effect until Dec. 1, and may be continued in individual
cases depending on a taxpayer’s circumstances.
Affected taxpayers in a federally declared disaster area may choose
to claim a disaster-related casualty loss on either their 2003 or
2004 state income tax returns. If a taxpayer files on a fiscal year
basis, the loss can be claimed on the return for the fiscal year in
which the loss occurred or the previous fiscal year.
Taxpayers claiming the loss on an original or amended 2003 state
income tax return should write “Tropical Storm Frances”
in black ink at the top right of the form. Taxpayers who wait to claim
the loss on their 2004 returns should also write “Tropical Storm
Frances” in black ink at the top right of the form when it is
filed. The loss must be deducted on the state income tax return in
the same tax year it is deducted for federal income tax purposes.
Generally, taxpayers in a federally-declared disaster area who receive
assistance payments from state programs, charitable organizations
or employers to cover medical, transportation, temporary housing or
other immediate subsistence needs do not have to include such payment
in their income.
(For additional information, taxpayers may contact
the Department of Revenue at 1-877-252-3052 or visit the Department’s
website at www.dor.state.nc.us. For information on
federal tax relief visit the Internal Revenue Service website, http://www.irs.gov/newsroom/index.html.)
Public Affairs Office
P.O. Box 25000, Raleigh, NC 27640-0001
An Equal Opportunity Employer
Last modified on:
10/31/07 03:44:10 PM