By Kay Gotshall, Senior Tax Manager | State & Local Tax Team
The North Carolina Department of Revenue is requiring large multi-state taxpayers (apportionable income from the 2014 Form CD-401S or CD-405 of greater than $10M, filing in NC and at least one other state) to submit Form CD-400MS by 4/15/16, regardless of whether the taxpayer files tax returns on a calendar year or fiscal year basis. This Form will help to determine the impact of a switch to a market-based approach of sourcing service revenue. There is no tax due with this report; however the penalty for noncompliance is $5,000 per taxpayer. There is no extension available at this time.
See the required form and additional guidance below for use in computing the information required by the form.