Addressing Erroneous Penalties On Individual Income Tax Returns

The N.C. Department of Revenue is aware of an issue that has caused some taxpayers to receive notices with erroneous penalties for failure to timely file their individual income tax return.  The issue impacts certain individual income tax filers that certified on their electronically filed return that the individual was granted an automatic extension to file the federal tax return.  This impacted only a subset of electronic returns that included the federal extension certification.

Once the department identified the issue, actions were taken to correct the problem for newly filed returns; however, returns processed prior to the identification of the issue were impacted.  Taxpayers who have been assessed a penalty in error should contact the department at 1-877-252-3052.