ATTENTION NC RESIDENTS!!!!!!!

As our Firm has a focus of clients in the state of North Carolina, we are going to take a break from our regularly scheduled action on Meals and Entertainment in order to push out some important information.

NC INDIVIDUAL, PARTNERSHIP, ESTATE AND TRUST INCOME TAX RETURNS DUE APRIL 18, 2011 -

The IRS has announced that individual taxpayers, nationwide, will have until Monday, April 18, 2011, to file their 2010 returns and pay any taxes due. Individuals get the extra time because Emancipation Day, a holiday in the District of Columbia, is observed this year on Friday, April 15, 2011. The April 18 deadline applies to any return or payment normally due on April 15. The IRS says that April 18, 2011 is also the deadline for requesting a tax filing extension and for making 2010 IRA contributions.

At the North Carolina Department of Revenue’s web site, they have announced that they will follow the April 18, 2011 extended filing date for certain returns and consider such returns and associated payments that would have been due on April 15 as timely if filed and paid by April 18, 2011.

The DOR says that the extended deadline applies to the following State forms and associated payments:

• 2010 State individual income tax returns, whether filed electronically or on paper
• First Quarter 2011 Individual Estimated Income Tax Payments
• Partnerships
• Estates and Trusts
• Applications for extension for any of the above tax forms

However, the NC Department of Revenue says that the April 18 extended deadline does not apply to the following:

• Corporate Estimated Tax Payments And Returns. The NC Department of Revenue says that the April 18, 2011 deadline does not apply to corporations that file franchise and corporate income tax returns due on April 15, 2011, or to first quarter 2011 corporate estimated income tax payments.

Certain Tax Breaks NOT adopted by the North Carolina legislature

Directly from our governing body, the NCACPA has notified its members the following:

“North Carolina has not adopted 2010 federal tax legislation (Small Business Jobs Act and the Tax Relief Act). Some of the commonly utilized provisions in these two bills for businesses are: bonus depreciation (both 50% and 100%); increasing Section 179 expense from $250,000 to $500,000; and increasing the immediate deduction for start-up costs from $5,000 to $10,000. Some of the commonly utilized provisions for individuals include higher education tuition deduction, teacher’s classroom deduction, and the direct gifting of IRA funds to a qualified charity.

North Carolina’s legislature will consider adopting some or all of the provisions listed above. Legislation is being prepared, but no official debate has begun. Members may decide to simply extend any impacted NC tax returns, or you may decide to file using current NC law, and amend later. Our state’s Department of Revenue is currently taking between five and six months to process amended returns, so this may also factor into your decision.”
As you file your NC taxes this year, please be mindful of the above information. Thanks and join us again next week as we continue discussing Meals and Entertainment.

brad@mcarthurco.com
704-544-8429