More than 500,000 NC residents sent incorrect tax bills after software change

CHARLOTTE, NC (WBTV) – For North Carolina residents, you may want to check your state tax bill. It turns out you may be one of the more than 500,000 people who got a wrong bill.

The mistake caused some to pay a more expensive fine than they should have. The problem occurred after NC Department of Revenue underwent a software change.

A late tax penalty rate is a fee charged to residents if a tax bill was paid late. Last year, that penalty was 10 percent. This year, the state lowered that penalty to five percent. The problem, however, is that some people still get bills that say they owe 10 percent.

Officials allegedly knew about the problem, but still decided to send incorrect tax bills along with a notice alerting taxpayers to the correct amount.

Ron Whitaker, who happens to be a tax professional, filed an extension and noted the incorrect penalty.

“Most people are scared when they get letters from the federal agent or state agent saying they owe,” he said. “They’re just going to assume, look, I’m going to pay this.”

NC Department of Revenue COO David Roseberry also spoke about the issue.

“We didn’t implement all the code changes that were necessary at the time the law went into effect,” he acknowledged.

Tax authorities said they are issuing refunds in as little as three days for people who overpay.

The state hopes to have the system fixed by January, but until then residents may continue to receive incorrect bills.

Related: Deadline to apply for HOMES Program property tax assistance extended

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