A BILL TO BE ENTITLED
AN ACT to clarify and amend the penalties for a taxpayer's failure to file a return.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑236(a)(3) reads as rewritten:
"§ 105‑236.  Penalties; situs of violations; penalty disposition.
(a)	Penalties. – The following civil penalties and criminal offenses apply:
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(3)	Failure to File Return. – In case of failure to file any return on the date it is due, determined with regard to any extension of time for filing, the Secretary shall assess a penalty equal to the following:
a.	For individual income tax imposed under Part 2 of Article 4 of this Chapter excluding income tax paid by a partnership or an S Corporation, the penalty is one hundred dollars ($100.00) if the net amount of the tax is greater or equal to zero. The "net amount of the tax" means the tax imposed after credits and tax payments.
b.	For all other taxes and individual income taxes paid by a partnership or an S Corporation, the penalty is equal to five percent (5%) of the amount of the tax if the failure is for not more than one month, with an additional five percent (5%) for each additional month, or fraction thereof, during which the failure continues, not exceeding twenty‑five percent (25%) in the aggregate. The "amount of the tax" means the tax imposed before credits and tax payments.
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SECTION 2.  This act is effective for penalties assessed on or after January 1, 2014.