The NC Department of Revenue announced that it will begin processing 2021 tax year returns in mid-February, which is several weeks after the start of the nation’s tax season on Monday, January 24, 2022.
This delay is due to the late approval of the state budget, which included multiple tax law changes. The later start date allows NCDOR time to complete the testing of system updates and approve updates in commercial tax preparation software, which are required to implement changes made by the final budget enacted in late November 2021.
North Carolina taxpayers may submit their state forms at the same time they submit their federal forms beginning January 24 if their tax preparation software has been updated for the upcoming year. The early submissions will be considered as filed on the date transmitted, even though there will be a delay in processing.
Payments associated with early submissions for fiscal year corporate filings will not be drafted until they are accepted by the modernized eFile (MEF) system and will be considered late. In lieu of submitting through the MeF system, payments can be made using the NCDOR’s online web apps for corporate and franchise filers.
Online payments are not currently available for partnerships or estates and trusts. The NCDOR advises that taxpayers will need to send payments via mail or using the voucher created by their software product. Payment vouchers are also available online for partnerships and estates and trusts.
NCDOR encourages taxpayers to use electronic filing rather than paper filing. E-filing ensures a faster refund and is the most secure way to file.
The Department will provide additional information in upcoming weeks regarding the exact start date and when taxpayers should begin to expect to receive individual income tax refunds.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.
The NCDOR previously stated payments associated with early submissions for fiscal year corporate filings would not be drafted until the state begins eFile processing in mid-February and would thus be considered late. After NCACPA expressed concerns about the decision, the Department reversed the policy and informed us that eFile payments submitted by the due date will be considered timely, even though the processing date remains unchanged.