North Carolina – Small Business Counseling Program Offers Fee and Penalty Waivers


SALT Report 2211 – The North Carolina Department of Revenue is offering a new program designed to help small businesses with outstanding sales and use tax liabilities.  The program is called the Small Business Counseling Program and offers financial planning and business counseling services to qualified participants.

The Program is open to businesses with less than 200 employees.  Once accepted into the program, the responsible corporate officer, the responsible LLC member, or the responsible partnership partner must agree to attend a business counseling program offered by either the Small Business and Technology Development Center, or the NC Small Business Center Network.

The counseling provided through the Program is confidential, and designed to build a relationship between the business owner and the business advisor. The advisor will analyze the businesses current financial situation, identify areas with improvement opportunities, and provide recommendations for the implementation of those improvements.

Businesses that complete the counseling program and file and pay all outstanding taxes can request to have their penalties and collection fees waived. However, fees and penalties will be reinstated if the program participants fail to file or pay future taxes on time.

Additionally, taxpayers may not participate in the Program if they:

  • Are facing criminal charges,
  • Are the subject of a criminal investigation at the time of application, or
  • Default on payments while participating in the Small Business Taxpayer Recovery Program or the Small Business Counseling Program

Finally, fees and penalties will not be waived for any tax period that is associated with a prior criminal conviction and taxpayers that file fraudulent returns will be subject to criminal prosecution.

For Further Information

North Carolina Department of Revenue – State Launches Second Program to Help Small Businesses with Trust Taxes