NC S COrp Extension Procedure

[erchess]

I have four S Corps that could end up needing extensions. All are Federal and NC only. I know how to use my software to efile the Federal Extensions but my questions concern State. I am pretty sure a separate NC extension is required as it would be for an individual return but I'd like conformation of that. I'd also like to know if I can file the NC extensions on the NCDOR website as I would for individual returns or if there is some other procedure. Also does anyone know the penalty for filing NC Scorp late when Federal if filed timely? TY for any help.

[JohnH]

The NC corp extension is CD-419.
It is used both for S-corps and C-Corps.

If paper filed, it is two little slips of paper which don't require signatures. You have to pay the franchise tax (min $35) with the extension in order for it to be valid - that's one slip of paper. The other slip if for income tax - normally an S-corp won't owe income tax, but if you plan to submit the annual report with the return, you need to pay the $25 annual report fee with the extension request and it is reported as a part of the income tax due on the CD-419. (You can also save $5 by foregoing this and filing the annual report online, but I don' think the extra bother is worth the $5 savings. Plus, you still have to file the Income Tax extension even if the balance due is -0-. May as well write one check for $60 and be done with it).

You can also do all this online at the NCDR web site.
Personally I think it's more trouble than just printing a paper extension request, but to each his own.

Penalties are not much - about 10% for FTP and up to 25% for FTF. Maybe $15 - $20 altogether for a $60 return. . Unless the corp has property or some other reason that it owes a lot of franchise tax. In that case, the FTP ans FTF penalties can mount up.

[erchess]

TY John

There are two clients involved one having one and one having three. The problem in both cases is money to pay me and money to pay the state. They're zero activity returns so my having the time involved is not the issue at all and neither is the clients gathering the info I need. One guy is truthfully broke to the point without charity he and his kids would starve and the other guy has a good income but he spends like the Federal Government and has the money for risky and mostly losing stock market plays despite being heavily in debt.

If we were to use the NCDOR website for the extensions, would there be an option to pay by credit card? That is the only way they will be paid at all ever.

[JohnH]

I'm pretty sure they can pay via credit card on the NC site.
If money is that tight, they could file and pay only the $35 franchise tax.
Then they could indicate that they plan to pay the Annual Report fee directly to the Sec of State, so the $25 would not be due with the extension.

[erchess]

Thank you John

You are most helpful.