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On April 17, 2025, the Internal Revenue Service (“IRS”) announced additional tax relief for taxpayers in North Carolina affected by and potentially still recovering from Hurricane Helene. Now, for individuals or households that live or operate a business anywhere in North Carolina, various federal tax filing and payment deadlines are further postponed to September 25, 2025 (replacing the previous deadline of May 1, 2025).
While the previous relief applied to taxpayers located in several states throughout the Southeast, the extended September 25, 2025, federal tax deadlines only automatically apply to taxpayers living or operating in North Carolina. However , the IRS will still work with any taxpayer that lives or operates outside North Carolina but whose records are located in North Carolina and are necessary to meet a deadline during the postponement period. The newly-announced relief includes information on how those taxpayers outside of North Carolina should contact the IRS.
Specifically, the September 25, 2025, deadline will now apply (but is not limited) to the following federal tax deadlines for North Carolina taxpayers:
Additionally, the North Carolina Department of Revenue (“NCDOR”) announced on April 23, 2025, that certain late action penalties will not be assessed against “Affected Taxpayers” for licenses, returns, or payments due on (or after) September 25, 2024, through September 25, 2025, if the license is obtained, the return is filed, or the tax is paid by September 25, 2025. Affected taxpayers include:
The North Carolina relief also extends to those taxpayers which previously received penalty relief through February 3, 2025, due to Tropical Storm Debby. Please note that this differs from the federal relief detailed above for some taxpayers. For instance, consider a North Carolina, calendar-year taxpayer with a properly extended 2023 partnership tax return filing. Supposing that this taxpayer resides in the Tropical Storm Debby disaster area, both the federal and North Carolina partnership filings would have been postponed to February 3, 2025, and then later postponed to May 1, 2025, by the original Hurricane Helene relief. However, the newly announced federal relief is limited to those filings and payments that occurred on or after September 25, 2024, thereby excluding the taxpayer from our example from receiving this additional federal deadline postponement. The example taxpayer would qualify for additional North Carolina tax relief, though, allowing them until September 25, 2025, to file.
As of this initial publication date, the most recent North Carolina relief applies only to certain late action penalties. The NCDOR announcement does not provide interest relief, meaning any payment after the original due dates will be assessed 7% annual interest until paid. The North Carolina General Assembly could provide interest relief in the future, but that should not be relied upon.
While the filing or license postponements above may be directly useful to taxpayers whose property or operations were affected by Hurricane Helene, all taxpayers in North Carolina should closely review their ability to improve short-term cash flows by deferring federal estimated income tax payments normally due in the coming months. We will continue to monitor disaster-related tax relief developments closely and provide updates as new details emerge. If you have any questions about the above federal or state relief, please consult with your Elliott Davis tax adviser.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
