On May 4, NC Governor Roy Cooper signed two highly-anticipated COVID relief bills into law that were unanimously passed by the North Carolina General Assembly on Saturday, May 2, 2020. The roughly $1.5 billion package addresses a variety of provisions, including economic support, education, health care, and provisions for the continuity of state government and regulatory relief. Senate Bill 704 was anxiously awaited by those in the state to help align expectations laid out by the Federal CARES Act.
While you can read the bills in their entirety here, we want to highlight a few impactful tax-related items:
- The accrual of interest on income and franchise tax liabilities owed between April 15 and July 15 is waived and includes the interest on underpayment of estimated income taxes for the 1st and 2nd quarter of 2020
- NC estimated tax payments for both Q1 and Q2 are now due July 15
As a reminder, the NC Department of Revenue previously postponed the filing and payment deadlines from April 15 to July 15 in response to the CARES Act and also waived the assessment of penalties between April 15 and July 15. The waiver of the resulting interest, however, required the legislative action we are now seeing put into place through this most recent bill.
For a summary of all tax deadlines, please click here.
If you have any specific questions on how you are impacted, please reach out to your SL advisor.