North Carolina Form CD-401S is the S-Corporation Tax Return that every S corporation doing business in North Carolina must file each year with the North Carolina Department of Revenue to report franchise tax, any built-in gains income tax, and the pass-through income that flows to its shareholders. The return covers two separate taxes on one form, and getting either piece wrong can trigger penalties, interest, and a notice that lands on the corporation’s registered agent within weeks.
The form solves a real problem: North Carolina taxes S corporations differently from C corporations, and shareholders need a clean NC K-1 to file their own personal returns. The most recent revision date on the official form is for tax year 2025, filed during 2026, and using an outdated version is one of the fastest ways to get a return rejected. According to the NCDOR’s most recent statistical abstract, more than 130,000 S-corporation returns are filed in North Carolina each year, and the agency reports that field-level errors and missing schedules drive a meaningful share of correspondence audits.
Here is what this guide covers:
- 📋 What CD-401S is, who must file it, and how it differs from federal Form 1120-S
- 🗂️ Every document and ID number you need before you open the form
- ✍️ A line-by-line walkthrough of every page, schedule, and box on CD-401S
- 👥 Three full filled-out examples, including a Taxed PTE election
- ⚖️ The deadlines, penalties, and statutes that govern the return, plus 12 FAQs
What Form CD-401S Is and Who Must File It
Form CD-401S is North Carolina’s combined franchise and corporate income tax return for S corporations. It is authorized by N.C.G.S. § 105-131 for the S-corp income tax provisions and by N.C.G.S. § 105-122 for the franchise tax. The franchise tax is owed at the entity level even when the corporation has no income tax due, which surprises many first-time filers.
Every corporation that has elected federal S-corporation status under IRC § 1362 and that is incorporated in North Carolina, domesticated in North Carolina, or doing business in the state must file CD-401S. “Doing business” is broad and includes owning property, having employees, or earning North Carolina-source income. A consequence of skipping the return when you have nexus is a non-filer notice plus a failure-to-file penalty of 5% per month, capped at 25%, under N.C.G.S. § 105-236.
A common misconception is that an S corporation does not owe North Carolina tax because the income passes through to shareholders. That is only true for the income tax portion in most cases, and only if a Taxed PTE election is not made. The franchise tax still applies, and an S corp that elects the Taxed PTE regime pays the income tax at the entity level instead of the shareholders paying it on their personal returns.
The form interacts with several others: federal Form 1120-S, the NC K-1 issued to each shareholder, Form CD-419 for extensions, Form CD-V for payment vouchers, and the NC-478 series for tax credits. Each plays a distinct role and missing any required attachment can stall processing.
Before You Start: Documents and Information You Need
Pull the following items together before you start typing into the form. Missing even one of these can force you to stop, request copies, and risk filing late.
- Federal Form 1120-S, complete with all schedules and K-1s. North Carolina starts from federal taxable income, so the return cannot be reconciled without the federal return. Without it, lines 1 through 8 on Schedule B cannot be computed.
- The corporation’s Federal Employer Identification Number (FEIN). NCDOR cross-checks this against IRS records. A wrong digit triggers a hold and a manual review.
- The corporation’s North Carolina Secretary of State ID number. This appears on the NC Secretary of State business registration page and is required for franchise tax computation.
- Date of incorporation and state of incorporation. Used to determine domestication and the franchise tax base.
- Beginning and ending balance sheet figures. Schedule G mirrors federal Schedule L, and missing balance sheet data is a top reason for rejection.
- Detailed apportionment data. Sales, payroll, and property by state are needed if the S corp does business outside North Carolina, feeding Schedule O.
- Shareholder list with SSNs or FEINs, addresses, and ownership percentages. Required for Schedule K and the NC K-1s.
- Prior year’s CD-401S. Needed for prior-year overpayments, carryforwards, and to confirm consistent accounting methods.
- Tax credit documentation, including NC-478 schedules. Without backup, NCDOR disallows the credit and bills the difference plus interest.
- Estimated payments made during the year and any extension payment on Form CD-419. Forgetting these results in a refund delay or an erroneous balance due notice.
Where to Get the Form and How to Access It
The official, current-year CD-401S lives on the NCDOR website. Download it from the corporate tax forms page where the agency posts the fillable PDF, the printable PDF, and the line-by-line instructions. Always verify the revision date in the lower corner of page 1 to confirm you have the right tax year version.
For e-filers, the form is available inside any NCDOR-approved tax software, including major professional packages. Approved software pulls the latest version automatically, which is one reason e-filing has a lower rejection rate than paper filing. The agency also operates the eFile for Business portal for direct submissions where supported.
If you prefer paper, you can request a mailed copy by calling NCDOR at 1-877-252-3052 or by visiting one of the regional service centers listed on the NCDOR contact page. Allow 7 to 10 business days for delivery, which matters if you are filing close to the deadline.
A nuance worth flagging is that NCDOR sometimes posts a mid-year revision when the General Assembly changes a rate or credit. If you started the return early in the season, re-download the form before you sign and file. The consequence of using a superseded version is a rejection letter and a forced refile, which can push you past the original due date.
Step-by-Step: How to Fill Out CD-401S Line by Line
The form has a header section, the franchise tax computation, the income tax computation, and several supporting schedules (B, C, F, G, H, I, K, N, and O). The instructions in the official CD-401S instruction booklet walk through each in order, and the line-by-line treatment below mirrors that order.
Header: Tax Year and Period
The header at the top of page 1 asks for the beginning and ending dates of the tax year. Enter the dates in MM-DD-YY format, with the beginning date on the left and the ending date on the right. For a calendar-year filer with a December 31, 2025 year-end, Aisha Patel writes 01-01-25 and 12-31-25.
A nuance is short-period returns. If the corporation incorporated mid-year or is filing a final return, the period may be less than 12 months, and the franchise tax must be prorated under N.C.G.S. § 105-122. A common mistake is entering only the year-end date and leaving the begin date blank, which causes the return to default to a calendar year and can misalign penalty calculations. The misconception some filers carry is that fiscal-year filers can use the prior year’s form; you must use the form for the year in which the fiscal year ends.
Legal Name, Address, and ID Numbers
Enter the corporation’s full legal name exactly as it appears with the NC Secretary of State, the street address, the FEIN, and the NC Secretary of State ID. Use ALL CAPS where the form’s field instructs and do not use abbreviations the SOS does not use.
Marcus Lee, the sole shareholder of LEE COASTAL CONSULTING INC., enters LEE COASTAL CONSULTING INC., 412 OAK STREET, WILMINGTON NC 28401, FEIN 12-3456789, NC SOS ID 1234567. If the corporation has a P.O. Box, enter the street address on the first line and the P.O. Box on the second line, because NCDOR uses the street address for nexus matching.
A common mistake is using a DBA instead of the legal name, which causes the return to be filed under the wrong taxpayer record and can create a phantom non-filer for the legal entity. The misconception is that “the IRS has my name fine, so NC will too.” NCDOR matches against the NC Secretary of State, not the IRS, and the names sometimes differ.
Filing Method and Status Boxes
Below the header are checkboxes for Initial Return, Final Return, Amended Return, Name Change, Address Change, and the Taxed PTE Election. Mark only the boxes that apply.
The Taxed PTE box is the most consequential. Sunrise Tech LLC’s S-corp parent checks the Taxed PTE box, which means the entity will compute and pay North Carolina income tax under N.C.G.S. § 105-154.1 at the 4.5% rate for tax year 2025. If you check that box but fail to compute and pay the entity-level tax on Schedule B, the return is incomplete and NCDOR will issue a deficiency notice.
A common mistake is checking Final Return in the year of an S-election revocation when the corporation continues to operate as a C corp. Final Return means the entity is dissolving in North Carolina, not that it is changing tax status. The misconception is that “final” relates to the federal S-corp status; it relates to the corporation’s existence in the state.
Schedule B: Computation of Income Tax
Schedule B begins with federal taxable income from the corporation’s federal Form 1120-S, then applies North Carolina additions (such as state and local bond interest from non-NC bonds) and deductions (such as US obligations interest). Each line carries a clear instruction inside the CD-401S instructions.
Janet Rivera’s S-corp adds back $4,200 of out-of-state municipal bond interest on Line 2 and deducts $1,500 of US Treasury interest on Line 5. Lines 7 and 8 then yield NC taxable income. For Taxed PTE filers, multiply Line 8 by the 4.5% rate to get the entity-level income tax due.
A nuance is the bonus depreciation addback under N.C.G.S. § 105-153.5, which requires adding back 85% of federal bonus depreciation and recovering it ratably over five years. A common mistake is forgetting the bonus depreciation addback in year one, which produces a deficiency notice with interest. The misconception is that “if I didn’t claim bonus depreciation federally, I have nothing to add back,” but partner-level Section 168(k) elections still flow through.
Schedule C: Computation of Franchise Tax
Schedule C is where many filers stumble because it asks for the largest of three bases: (1) the corporation’s apportioned net worth, (2) 55% of the appraised property value, or (3) the actual investment in tangible property in NC. The franchise tax is $1.50 per $1,000 of the largest base, with a minimum of $200, under N.C.G.S. § 105-122.
Carlos Mendez’s S-corp shows apportioned net worth of $850,000, which produces $1,275 of franchise tax (850 × $1.50). If the appraised property base were higher, that figure would replace net worth in the calculation.
A nuance is that the minimum franchise tax of $200 still applies even if all three bases are zero, as long as the corporation has nexus in NC for any portion of the year. A common mistake is computing the tax on the lowest base instead of the highest, which produces an underpayment and triggers the 10% late-payment penalty under N.C.G.S. § 105-236. The misconception is that an S corp that lost money owes no franchise tax; the franchise tax is unrelated to profitability.
Schedule F: Apportionment Factor
Schedule F (and the related Schedule O for multistate filers) computes the single sales factor that North Carolina uses to apportion income to the state. Enter NC sales on the numerator and total sales everywhere on the denominator, then divide.
A multistate S-corp with $2,400,000 of total sales and $600,000 of NC sales enters 0.250000 as its apportionment factor. The factor is carried to four to six decimal places, never rounded to a whole percent.
A nuance is the sourcing of service revenue: NC uses market-based sourcing under N.C.G.S. § 105-130.4, so service receipts are sourced to where the customer receives the benefit. A common mistake is sourcing service revenue to the office that performed the work, which understates the NC numerator and triggers an apportionment adjustment on audit. The misconception is that NC still uses a three-factor formula; it has been single-sales since 2018.
Schedule G: Balance Sheet
Schedule G mirrors federal Form 1120-S Schedule L. Enter beginning-of-year and end-of-year totals for assets, liabilities, and shareholder equity. The numbers must tie to the federal return exactly.
Lee Coastal Consulting Inc. enters total assets of $312,000 at the start of the year and $358,000 at year-end, matching the federal Schedule L. Off-by-a-dollar mismatches between Schedule G and federal Schedule L are flagged by NCDOR’s matching software and produce correspondence notices.
A nuance is that small S corps that meet the federal Schedule L exemption (less than $250,000 in receipts and assets) are still expected to enter balance sheet data on Schedule G if they have any. A common mistake is leaving Schedule G blank when assets exist, which causes the return to be treated as incomplete. The misconception is that NCDOR will pull the figures from the attached federal return; it will not.
Schedule H: Shareholder Information
Schedule H lists each shareholder’s name, address, SSN or FEIN, and ownership percentage during the year. Each entry must be exact because the data feeds the NC K-1 issued to each shareholder.
A two-shareholder S corp lists Maria Lopez (SSN 123-45-6789, 60%) and David Chen (SSN 987-65-4321, 40%). If ownership changed mid-year, list each ownership period separately so the K-1s allocate income correctly.
A nuance is nonresident shareholders, who must either sign Form NC-NA (a nonresident shareholder agreement) or have NC tax withheld at 4.5% by the corporation. A common mistake is omitting the agreement for a nonresident, which forces the corporation to withhold and remit 4.5% of that shareholder’s NC-source income. The misconception is that an S corp can simply not list a nonresident; every shareholder must be listed on Schedule H.
Schedule K: Shareholders’ Pro Rata Share
Schedule K reports each shareholder’s distributive share of NC-source income, deductions, and credits. The totals must match the corporation’s NC taxable income.
The S corp from the example above allocates $90,000 of NC ordinary income, with $54,000 to Maria and $36,000 to David. These figures appear on each shareholder’s NC K-1 and flow to their NC personal returns.
A nuance is special allocations: NC respects substantial economic effect under federal partnership rules but applies them more narrowly to S corps, which generally must allocate strictly by ownership percentage. A common mistake is reallocating items disproportionately to lower-bracket shareholders, which NCDOR will reverse on audit. The misconception is that S corps can use partnership-style flexibility, which they cannot.
Schedule N: Computation of Net Worth
Schedule N supports Schedule C by computing the corporation’s net worth, starting with capital stock, paid-in capital, and retained earnings, then making NC-specific adjustments. Show the amounts at year-end.
Lee Coastal Consulting Inc. shows $1,000 of common stock, $99,000 of paid-in capital, and $750,000 of retained earnings, for total net worth of $850,000. That figure carries to Schedule C as one of the three franchise tax bases.
A nuance is the treatment of treasury stock and intercompany debt, both of which can adjust the net worth figure. A common mistake is using book equity without making the NC adjustments, producing either an understatement (and underpayment penalty) or an overstatement (and overpayment that is hard to recover). The misconception is that net worth equals federal Schedule L equity; it usually does, but not always.
Schedule O: Apportionment for Multistate Filers
Schedule O is where multistate S corps detail their sales-by-state, payroll-by-state, and property-by-state. While only the sales factor is used in the apportionment math, NCDOR uses the other two for verification and audit selection.
A multistate S corp with operations in NC, SC, and VA lists $1,800,000 of NC sales, $400,000 of SC sales, and $200,000 of VA sales on Schedule O. Those entries reconcile to Schedule F’s numerator and denominator.
A nuance is the throwback rule: NC does not apply a throwback rule, so sales into states where the seller has no nexus are not added back to the NC numerator. A common mistake is applying a throwback rule out of habit from another state, which overstates NC sales and overpays tax. The misconception is that NC follows a uniform multistate compact; the state has its own rules under N.C.G.S. § 105-130.4.
Tax, Payments, and Balance Due Section
Near the end of page 1, the form sums the franchise tax, income tax (if any), and any tax credits to produce a total tax. Then payments — estimated payments, the extension payment from Form CD-419, and any prior-year overpayment applied — are subtracted to produce a balance due or refund.
Sunrise Tech LLC’s S-corp shows total tax of $13,500, estimated payments of $11,000, and an extension payment of $2,000 on Form CD-419, producing a $500 balance due. The corporation pays with Form CD-V, the corporate payment voucher.
A nuance is interest on underpayments, which accrues at the rate set quarterly by the Secretary of Revenue under N.C.G.S. § 105-241.21. A common mistake is failing to include the extension payment on the payment line, which makes the return show a phantom underpayment and triggers a notice. The misconception is that an extension to file is also an extension to pay; it is not.
Signature, Date, and Preparer Information
The signature block requires the signature of an officer (typically the president, treasurer, or other authorized officer), the date, and the title. A paid preparer who completed the return must also sign, enter their PTIN, and provide their firm’s information.
Aisha Patel, president, signs and dates the return on March 12, 2026, and her CPA, Marcus Lee, signs as preparer with PTIN P12345678. Without an authorized officer’s signature, the return is treated as unfiled.
A nuance is that an electronically filed return uses a PIN as the signature, not a handwritten one. A common mistake is having a non-officer (such as a bookkeeper) sign, which invalidates the return. The misconception is that any shareholder can sign; only an authorized officer can.
Three Filled-Out Examples Using Real Scenarios
Each scenario below walks one named filer through the form. Italicized entries show what each filer writes in each section.
Scenario 1: Aisha Patel — Single-Shareholder NC-Only S-Corp
| Form Section | What Aisha Enters |
|---|---|
| Tax year | 01-01-25 to 12-31-25 |
| Legal name and address | PATEL DESIGN STUDIO INC., 18 BIRCH LANE, RALEIGH NC 27601 |
| FEIN and NC SOS ID | FEIN 45-6789012, NC SOS 1654321 |
| Filing status boxes | None checked (regular return) |
| Schedule B Line 1 | Federal taxable income: $112,000 |
| Schedule C franchise tax | Net worth $260,000 → $390 franchise tax |
| Schedule F apportionment | 1.000000 (NC-only) |
| Schedule H shareholders | Aisha Patel, SSN 234-56-7890, 100% |
| Total tax and balance due | Total tax $390, paid with Form CD-V, $0 due |
Scenario 2: Carlos Mendez — Multistate S-Corp With NC, SC, and VA Sales
| Form Section | What Carlos Enters |
|---|---|
| Tax year | 01-01-25 to 12-31-25 |
| Legal name and address | MENDEZ LOGISTICS INC., 902 PINE ROAD, CHARLOTTE NC 28202 |
| FEIN and NC SOS ID | FEIN 33-4455667, NC SOS 1789654 |
| Filing status boxes | None checked (regular return) |
| Schedule B Line 1 | Federal taxable income: $480,000 |
| Schedule F sales factor | NC sales $1,800,000 / total $2,400,000 = 0.750000 |
| Schedule C franchise tax | Apportioned net worth $1,200,000 → $1,800 franchise tax |
| Schedule H shareholders | Carlos Mendez 70%, Lila Mendez 30% |
| Schedule O multistate detail | NC $1,800,000, SC $400,000, VA $200,000 |
| Total tax and balance due | $1,800 franchise tax, $0 income tax (no PTE), refund of $200 from prior overpayment |
Scenario 3: Sunrise Tech — S-Corp Electing the Taxed PTE Option
| Form Section | What Sunrise Tech Enters |
|---|---|
| Tax year | 01-01-25 to 12-31-25 |
| Legal name and address | SUNRISE TECH INC., 55 ELM AVENUE, DURHAM NC 27701 |
| FEIN and NC SOS ID | FEIN 88-7766554, NC SOS 1998877 |
| Filing status boxes | Taxed PTE Election checked |
| Schedule B NC taxable income | $300,000 × 4.5% = $13,500 entity-level tax |
| Schedule C franchise tax | Net worth $700,000 → $1,050 franchise tax |
| Schedule H shareholders | Three shareholders at 40%, 35%, 25% |
| Schedule K NC K-1s | Each shareholder receives a Taxed PTE credit equal to their share of the $13,500 |
| Payments | Estimated payments $11,000, extension payment on CD-419 $2,000 |
| Balance due | $1,550 paid with Form CD-V |
How to File the Completed Form
NCDOR accepts CD-401S through three filing channels, each with its own steps, fees, and proof-of-filing.
E-file through approved tax software. Most professional packages (and several DIY packages) support CD-401S e-filing through the NCDOR Modernized e-File system. There is no NCDOR fee, though software vendors charge their own. Payment is made by direct debit (ACH) or by credit card through the NCDOR e-services portal, and processing time runs 2 to 4 weeks. Keep the software’s acknowledgment file as proof of filing.
Mail a paper return. Send the signed return, all required schedules, the federal Form 1120-S copy, NC K-1s, and Form CD-V (if a balance is due) to: North Carolina Department of Revenue, P.O. Box 25000, Raleigh, NC 27640-0500. There is no filing fee. Pay by check made out to “NC Department of Revenue” with the FEIN and tax year on the memo line. Use certified mail with return receipt as proof of filing, since processing time can run 8 to 12 weeks.
Pay online while filing on paper. Even paper filers can pay through NCDOR’s online services using a checking account (free) or a credit card (a third-party convenience fee applies). The confirmation number is your payment proof. This combination — paper return, online payment — is common for small S corps that want the speed of an online payment without buying software.
A nuance across all channels is the postmark rule: a paper return is timely if postmarked by the due date, while an e-filed return is timely if accepted by the due date. A common mistake is filing on the deadline through software and missing a rejection that requires resubmission within the perfection period.
What Happens After You File
Once NCDOR receives the return, it goes through automated matching against federal data, the NC Secretary of State business registry, and the agency’s prior-year records. Most returns clear matching within 30 days. If a refund is due, allow 6 to 8 weeks for an e-filed return and 10 to 14 weeks for a paper return.
If the return triggers a notice, it usually arrives by mail within 60 to 90 days. Common notices include a proposed assessment, a request for additional information (often the missing federal return or NC K-1s), or a math-error correction. Each notice has a deadline (typically 30 to 45 days) to respond, and ignoring it converts a proposed assessment into a final one with collection consequences.
Refunds can be applied to next year’s estimated tax by checking the appropriate box on the form, which is faster than waiting for a check and helps avoid an underpayment penalty for the next year. NC issues refunds by paper check or direct deposit when the corporation provided routing information.
A nuance is the statute of limitations: NCDOR generally has three years to audit under N.C.G.S. § 105-241.8, but six years if income is understated by 25% or more, and unlimited if the return was fraudulent or never filed. Keep records — federal return, schedules, and workpapers — for at least seven years.
Mistakes to Avoid When Filling Out the Form
These are the errors NCDOR sees most often, with the consequence each one triggers.
- Using the wrong tax year version of the form. Causes a rejection and forces a refile, sometimes past the due date.
- Mismatched legal name vs. NC Secretary of State record. Triggers a non-filer record under the legal entity and a notice.
- Forgetting the bonus depreciation addback on Schedule B. Produces a deficiency notice with interest.
- Computing franchise tax on the wrong base. Underpayment plus the 10% late-payment penalty.
- Leaving Schedule G (balance sheet) blank. Treated as an incomplete return, blocking refunds.
- Sourcing service revenue to the office that did the work. Apportionment adjustment on audit and back tax.
- Omitting nonresident shareholder withholding or NC-NA agreements. Forces 4.5% withholding plus penalty.
- Skipping Schedule O for multistate filers. Apportionment is recomputed at 100% NC, sharply increasing tax.
- Checking Final Return when the entity is still alive. Closes the NCDOR account and creates re-registration headaches.
- Filing without the federal Form 1120-S attached. Marks the return incomplete and stalls processing.
- Missing the Taxed PTE box but computing PTE tax anyway. NCDOR refunds the entity-level payment and bills the shareholders.
- Forgetting to claim the extension payment on the payments line. Creates a phantom underpayment and a notice.
Do’s and Don’ts
The points below are the most consequential, with a brief reason after each.
Do’s
- Do download the form on the day you start the return, because mid-year revisions can change line numbers.
- Do reconcile every line on Schedule B to federal Form 1120-S, because automated matching catches every dollar.
- Do compute franchise tax on all three bases, because the largest base controls and missing it is an underpayment.
- Do issue NC K-1s to every shareholder by the federal K-1 deadline, because shareholders need them for personal returns.
- Do keep the certified-mail receipt or e-file acknowledgment for at least seven years, because it is your only proof of timely filing.
- Do check the NCDOR website each January for rate or credit changes, because legislation often changes between tax years.
Don’ts
- Don’t treat the income tax as the only tax, because the franchise tax applies even with zero income.
- Don’t allocate income disproportionately by shareholder, because S corps must follow ownership percentages.
- Don’t sign the return as a non-officer, because a non-officer signature invalidates the return.
- Don’t leave the NC SOS ID blank, because the franchise tax record cannot be matched without it.
- Don’t forget to attach the federal return, because the return is treated as incomplete without it.
- Don’t pay an extension and forget to file Form CD-419, because the payment will not match an active extension request.
Pros and Cons of Filing on Your Own vs. With a Professional
This is the trade-off most small S-corp owners weigh near the deadline.
Pros of filing on your own
- Lower cost, because there is no preparer fee.
- Full control over timing, because you do not wait on a preparer’s queue.
- Direct knowledge of your numbers, because you are closer to the books.
- Faster small-corporation returns, because a single-state, single-shareholder return is straightforward.
- Easier learning curve year over year, because you reuse the prior-year template.
Cons of filing on your own
- Higher risk of missing the bonus depreciation addback, which is one of the most common audit triggers.
- Difficulty applying market-based sourcing, because service-revenue rules are technical.
- No E&O coverage, because professional preparers carry insurance for their work.
- Limited audit defense, because you must respond to NCDOR notices yourself.
- Higher chance of using the wrong franchise tax base, because the three-base rule is unfamiliar to non-tax filers.
NC Form CD-401S vs. NC Form CD-405
| Topic | CD-401S vs. CD-405 |
|---|---|
| Entity type | CD-401S is for S corporations, CD-405 is for C corporations |
| Income tax rate | CD-401S generally passes through, CD-405 pays NC corporate income tax at 2.25% for 2025 |
| Franchise tax base | Both use the same three-base test under § 105-122 |
| Pass-through option | Only CD-401S supports the Taxed PTE election |
| K-1 issuance | CD-401S issues NC K-1s, CD-405 does not |
FAQs
Do I have to file CD-401S if my S corp had no income?
Yes. A federally elected S corp with NC nexus must file CD-401S each year and owes at least the $200 minimum franchise tax even with zero income.
Can I file CD-401S electronically?
Yes. NCDOR-approved software supports CD-401S e-filing and provides an acknowledgment that serves as proof of timely filing.
What is the deadline for CD-401S?
Yes, there is one — the 15th day of the 4th month after the tax year ends, which is April 15, 2026 for calendar-year 2025 filers, mirroring federal Form 1120-S timing.
Can I get an extension?
Yes. File Form CD-419 by the original due date for an automatic six-month extension to file, but pay any tax owed by the original deadline to avoid penalty.
What happens if I file late?
Yes, there are penalties — 5% per month failure-to-file (capped at 25%) plus 10% failure-to-pay, plus interest at the rate posted by NCDOR.
Do I check the Taxed PTE box every year?
No. The election is annual and must be marked on the timely-filed return for that year; it does not roll forward automatically.
What goes on Schedule H Line 1 if my shareholder is a trust?
Yes, list the trust — enter the trust’s legal name and EIN on Schedule H, and use the trustee’s address for correspondence.
Do I write my SSN or my FEIN at the top of CD-401S?
No. The corporation’s FEIN goes in the FEIN box; SSNs only appear on Schedule H for individual shareholders.
Do I need to attach my federal Form 1120-S?
Yes. A complete copy of federal Form 1120-S, including all schedules and K-1s, must be attached or the return is treated as incomplete.
Can a single-member S corp skip Schedule G?
No. Schedule G is required if the corporation has any assets or liabilities, regardless of the number of shareholders.
What format does the date go in on the header?
Yes, use MM-DD-YY — for a calendar-year 2025 return, write 01-01-25 and 12-31-25, not January 1, 2025.
Can my bookkeeper sign CD-401S for me?
No. Only an authorized officer (typically the president, treasurer, or other corporate officer) can sign; a non-officer signature voids the return.
Related reading
- Business Tax Preparation in Roseville, CA
- How to Fill Out North Carolina Form BE-12 (w/Examples) + FAQs
- How to Fill Out North Carolina Form CD-405 (w/Examples) + FAQs
- How to Fill Out North Carolina Form CD-419 (w/Examples) + FAQs
- How to Fill Out North Carolina Form D-400 (w/Examples) + FAQs
- How to Fill Out North Carolina Form D-403 (w/Examples) + FAQs
- How to Fill Out North Carolina Form AOC-CV-100 (w/Examples) + FAQs