What are the penalties for late filing or payment of taxes in North Carolina?

The penalties for late filing or payment of taxes in North Carolina are determined by the amount of tax owed and the duration of the delay. If you file your return late, a penalty of 5% per month is imposed, not exceeding a total of 25%. Similarly, if you fail to pay your tax on time, a penalty of 5% is charged on the unpaid amount per month, also capping at 25%. In addition, interest is accrued on the unpaid tax at a variable rate set by law. If both the late filing and payment penalties apply, they are not combined and the maximum penalty remains at 25% of the unpaid tax. It is important to note that penalties and interest are automatically calculated and applied to your tax liability if you fail to meet the deadlines.