Collection Options and Remedies
If you have received a Notice of Collection, then an assessment against you has become final and collectible. Your account has been assigned for collection. If the liability is not paid, North Carolina General Statutes authorize the Department of Revenue to pursue one or more of the following collection options under NC Gen. Stat. §105-242:
- Attach and Garnish your wages, salary or bank deposits.
- Issue a Tax Warrant directing the sheriff or a designated employee of the Department of Revenue to levy upon and sell your property.
- File a Certificate of Tax Liability (i.e., a lien on your property).
- Where criminal tax proceedings are initiated, request payment of taxes as a condition of any plea arrangement or as restitution upon any conviction.
If the Department of Revenue pursues the collection options set out above, the following options or remedies are available to you:
- You can end the attachment and garnishment of your wages, salary, and bank deposits and the seizure of your property by making full payment of the assessed liability.
- You can secure the release of a Certificate of Tax Liability by making full payment of the assessed liability.
- You can seek the release of a Certificate of Tax Liability (CTL) if one of the following conditions are met:
- The judgment was filed in error.
- The liability has become unenforceable due to the lapse of time.
- The CTL is creating an economic hardship for you.
- The fair market value of the property exceeds the tax liability and release of the CTL on part of the property would not hinder collection of the liability.
- Releasing the CTL would increase the State’s chances for collecting the tax.
- You can seek to enter into an installment payment agreement.
- In the event criminal tax proceedings are initiated, you should contact your attorney and the prosecutor to determine your options.
If you wish to pursue any of these options or remedies, please contact the Department at the number listed on the front of the Notice of Collection.
- Taxpayer Self-Help
- Tax Information
- 2014 Individual Income Tax Law Changes
- 2015 Income Tax Estimator
- Understanding Your Notice
- Collections – Past Due Taxes
- Taxpayer Advocate
- Armed Forces
- Resolving Disputes
- Periodic Review of Existing Rules
- Property Auctions
- Reports and Statistics
- Tax Seminars
- Identity Theft