North Carolina S96 modifies the penalty for tax payments returned due to insufficient funds or nonexistence of an account.

North Carolina S96 changes the penalty for tax payments returned due to insufficient funds or nonexistence of an account from the greater of $25 or 10% of the amount, up to $1,000, to a flat $35. This penalty applies to checks or electronic funds transfers presented for tax payment on or after July 1, 2025. The penalty does not apply if the tax collector determines the drawer or transferor had sufficient funds but failed to draw the check or initiate the transfer on the correct account by inadvertence.

North Carolina S96 modifies the penalty for tax payments returned due to insufficient funds or nonexistence of an account.

North Carolina S96 changes the penalty for tax payments returned due to insufficient funds or nonexistence of an account from the greater of $25 or 10% of the amount, up to $1,000, to a flat $35. This penalty applies to checks or electronic funds transfers presented for tax payment on or after July 1, 2025. The penalty does not apply if the tax collector determines the drawer or transferor had sufficient funds but failed to draw the check or initiate the transfer on the correct account by inadvertence.