More than 500K NC residents sent incorrect tax bills after software change

The issue had to do with Late Tax Payment penalties.
A Late Tax Payment Penalty Rate is a fee charged to residents if a tax bill was paid late, and was lowered from last year's mark.
Published: Nov. 16, 2023 at 6:31 AM EST
Email This Link
Share on Pinterest
Share on LinkedIn

CHARLOTTE, N.C. (WBTV) - For residents of North Carolina, you might want to check your state tax bill. It turns out you could be one of the more than 500,000 people who got an incorrect bill.

The mistake caused some to pay a more expensive penalty that they should have. The issue arose after the NC Department of Revenue underwent a software change.

A Late Tax Payment Penalty Rate is a fee charged to residents if a tax bill was paid late. Last year, that penalty was 10 percent. This year, the state lowered that penalty to five percent. The problem, though, is that some people are still getting bills that say they owe 10 percent.

Officials allegedly knew about the issue, but decided to send incorrect tax bills anyway, along with a notice alerting taxpayers of the correct amount.

Ron Whitaker, who happens to be a tax professional, filed an extension and noticed the incorrect penalty.

“Most people are afraid when they get letters from the federal agent or state agent saying they owe,” he said. “They just gonna assume, listen, I have to pay this.”

NC Department of Revenue COO David Roseberry also spoke to the problem.

“We did not complete all the code changes that was necessary by the time that law was in effect,” he acknowledged.

Tax officials said they are issuing refunds, in as little as three days, for people who overpay.

The state hopes to have the system fixed by January, but until then residents could continue to get incorrect bills.

Related: Deadline to apply for HOMES Program property tax assistance extended

Watch continuous news coverage here: