Additional Filing and Payment Relief for North Carolina Taxpayers

On April 17, 2025, the Internal Revenue Service (IRS) announced expanded tax relief for all North Carolina residents due to the ongoing effects of Hurricane Helene. Originally, the IRS granted relief to file returns and make tax payments that were due between September 25, 2024 through May 1, 2025 until May 1, 2025. With this new announcement, the deadline for various federal tax filings and tax payments has now been postponed to September 25, 2025.

Who Qualifies for Relief?

All individuals and businesses with a residence or principal place of business in North Carolina qualify for this relief. The IRS will automatically apply the relief based on a NC address on record. If an affected taxpayer moved to NC after filing their return and their current NC address is not on record, they will not receive automatic relief and should call the IRS to update their address and request additional relief.

Taxpayers outside North Carolina whose records are located in the disaster area, or relief workers affiliated with recognized organizations, may also qualify by contacting the IRS.

Key Deadlines Now Extended to September 25, 2025

Affected individuals and businesses will have until September 25, 2025 to file federal tax returns and make federal tax payments that were originally due between September 25, 2024 and September 25, 2025. Notable deadlines now postponed include:

• 2023 tax year returns for Individuals, corporations, fiduciaries, and tax-exempt organizations with a valid extension (payments are not eligible for relief since would have been due before the disaster period started)

• 2024 Individual income tax returns and payments normally due on April 15, 2025.

• 2024 business tax returns that are normally due in March or April 2025.

• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.

• Calendar-year tax-exempt organization returns normally due on May 15, 2025.

• 2024 fourth quarter estimates either due December 16, 2024 or January 15, 2025; and 2025 quarterly estimates normally due on April 15, June 16, and September 15, 2025.

• 2024 contributions to IRAs and Health Savings Accounts.

• Quarterly payroll and excise tax returns due October 31, 2024, and January 31, April 30, and July 31, 2025

A taxpayer that needs additional time beyond September 25, 2025 may apply for an extension. The extension must be paper filed and only applies to returns with a normal final due date after September 25, 2025 (e.g., individual returns due October 15, 2025).

Additional Tax Relief

There is additional tax relief for those individuals and businesses in North Carolina that experienced uninsured or unreimbursed damage. Those taxpayers have the option to claim a casualty loss in either the year of the loss (2024) or the prior year (2023). Additionally, those taxpayers who receive insurance proceeds in excess of basis of damaged property have the option to defer gain recognition by purchasing qualified replacement property. Finally, there may be additional relief for those taxpayers who participate in a retirement plan or IRA. The taxpayer may be able to take a special disaster distribution and it would not be subject to the 10% early distribution penalty and spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Some of these actions are time sensitive.

State Tax Relief

The North Carolina Department of Revenue (NCDOR) has also issued guidance aligning with the IRS relief, including penalty waivers for state tax filings and payments due between September 25, 2024 and September 25, 2025, provided they are filed and paid by September 25, 2024. The NCDOR does not have the authority to authorize interest relief and currently there is no interest relief granted to September 25, 2025.  

If you have questions about how these changes affect your specific situation or need assistance requesting additional extensions or claiming disaster-related tax benefits, please contact the office.