Penalty Waiver Policy

The Penalty Waiver Policy document describes in detail the penalty waiver policy of the NC Department of Revenue. The North Carolina General Statutes require the Department to impose certain civil penalties on taxpayers who do not comply with the tax laws and give the Secretary of Revenue the authority to waive or reduce all of these penalties. A taxpayer may request a waiver of penalties in any of the following three ways:

1. Submitting Form NC-5500, Request to Waive Penalties (the form is available by calling our toll-free taxpayer assistance line at 1-877-252-3052 and selecting the menu option for Forms, from any Department of Revenue field office, or by accessing the Department's website at Request to Waive Penalties / NC5500.pdf )
2. Writing a letter, and
3. Calling the Department, in limited circumstances.

The Department notifies the taxpayer of its decision to either grant or deny said request.