If a North Carolina resident fails to pay his state taxes in full by April 15th, the state may assess penalties and interest on the outstanding balance. Interest is calculated from the due date, April 15th, to the date of payment, even when an extension is granted.
If an individual files his state taxes late, the state of North Carolina can charge a late penalty of five percent of the unpaid tax every month the return is late. For example, if an individual is two months late, the state of North Carolina can charge five percent twice, or 10 percent. However, the total late fees cannot exceed 25 percent of the total unpaid tax that's due. In other words, after five months, North Carolina will stop assessing this fee.
The state can charge a late penalty of 10 percent on any unpaid tax that is paid late. If an individual has an extension, however, and if 90 percent of what is owed was paid on time, no penalty will be accessed if the remaining 10 percent is paid by the end of the extension.
The North Carolina Department of Revenue can attach a Collection Assistance Fee on all unpaid taxes that are more than 90 days past due. The Collection Assistance Fee is equal to 20 percent of the unpaid taxes. However, this fee does not apply if the individual is making payments on a payment plan.
If any individual writes a bad check, the Department of Revenue will tack on a penalty of 10 percent of the check amount. However this penalty may not exceed $1,000. Additionally, a negligence penalty of 10 to 25 percent may be attached if an individual makes erroneous statements, such as underestimating income or overestimating deductions on his tax filing.
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
What is a State Tax Certificate in North Carolina?
When you run your business out of the state of North Carolina, "sales" and "use" tax must be collected from taxable tangible...
How to Calculate North Carolina State Income Tax
In North Carolina, four tax brackets are used to determine the income tax rates for individuals. People earning higher incomes are taxed...
How to File for a Tax Extension in the State of North Carolina
The state of North Carolina offers a free, automatic tax filing extension to anyone who files from D-410 before the tax filing...
How to Pay North Carolina Vehicle Taxes Online
North Carolina uses a combined "tag and tax" system. This means that you must pay your vehicle tax at the same time...
Is There a Penalty for Filing My State Taxes Late?
State taxes are taxes that are paid to a state government. Every year, most residents of a state are required to file...
Who Must Pay State Income Tax in North Carolina?
In North Carolina, taxpayers must use Form D-400 to file their state income tax returns. The gross minimum income filing thresholds in...