Important New Reporting Requirement by North Carolina Due April 15, 2016 and No Extension is Allowed

Posted on 02.09.16

Important New Reporting Requirement by North Carolina Due April 15, 2016 and No Extension is Allowed

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.

Required Form:

Form CD-400mS

Additional Guidance:

Questions on this new requirement? Contact your Keiter representative or email us.

Posted by: Kay F. Gotshall, CPA

Kay serves several of Keiter's larger corporate clients with their FAS 109 tax provision and returns. Currently, Kay leads the Keiter multi-state tax team, which is primarily responsible for a majority of the multi-state tax filings prepared by the firm. In addition, the Keiter multi-state tax team provides income, as well as, sales and use audit and research support services. Kay works on a wide variety of industries, since most of her clients are multi-state. Some of the specific industries she serves include services, broker-dealers, manufacturing, and construction. Furthermore she consults with a variety of clients on filing requirements for multi states and foreign company ownership and operations.