Update—NC-3 e-Filing for Tax Year 2019

On February 19, 2019, NCACPA met with Department of Revenue leaders to discuss the Department’s responses to our proposed solutions for NC-3 e-filing. The Association could not have done this work without the help of members Barb Sarvis, Elizabeth Monday, Jack Harris, and Drew Edmundson—as well as the many members who shared input on Connect.

Of note, for Tax Year 2019, the DoR will not require the filing of 1099s with no withholding. The Department will continue improving their technology to make it as easy as possible to file 1099s with no withholding, but will not mandate it. However, the requirement will likely be reinstated in future tax years once the technology is substantially improved (and user-tested) in efforts to combat fraudulent filing.

The Department is committed to engaging more proactively with software vendors and NCACPA to improve the e-filing process starting now. With our help, they will look to practicing CPAs to help with the internal and external testing of DoR products.

The Department will hold additional meetings internally over the next couple of weeks, and plans to have an update for the Association in 4-6 weeks.