Taxpayer's/Employee's Frequently Asked Questions

If you have additional questions or concerns that are not addressed below, please contact a case resolution specialist at 1-877-252-3252.

Reasons for Attachment and Garnishment

Why did you attach and garnish my bank account?

If you have a past due balance, the Department of Revenue may attach and garnish your bank account to pay taxes due. Delinquent balances may include taxes, penalties, fees and interest.

Why did you attach and garnish 100% of my contractual payments?

If you have a past due balance, the Department of Revenue may attach and garnish 100% of any payments received as a result of the contract as well as any commissions. Delinquent balances may include taxes, penalties, fees and interest.

Why did you attach and garnish my wages?

If you have a past due balance, the Department of Revenue may attach and garnish the wages owed to you by an employer. Delinquent balances may include taxes, penalties, fees and interest.

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Withholding Requirements

What is the attachment and garnishment amount?

Wage attachments and garnishments are 10% of a taxpayer’s gross income until the tax liability has been settled. Non-wage, contract and bank attachments and garnishments are issued at 100% of the liability due until the tax liability has been settled.

What are "salaries" and "wages" as it applies to the 10% limitation on the attachment and garnishment?

Salaries and wages are any amounts paid to you that would typically be reported on a W-2 or NC-2 form. NC general statutes do not allow the Department of Revenue to require more than 10% of monthly gross salaries and wages to be deducted from your paychecks.

Can a garnishment attach to payments or other assets that are not reported on my W-2 or NC-2 and are not considered salaries and wages? Are these subject to any garnishment limitations?

The garnishment attaches bank accounts, rents, royalties, contract payments, deposits, accounts receivables and all other intangible property incapable of manual levy. These amounts are not subject to the 10% limitation. The full amount of these types of payments that would otherwise be paid to you must be garnished and remitted to the Department of Revenue.

For example, as an employee of a bank you may also have deposit accounts at the bank. In this case, the bank must remit 100% of any deposits to the Department of Revenue. Additionally, the bank must withhold 10% of your gross salaries or wages until the liability shown due on the garnishment, together with accrued interest, is paid in full.

How often must my employer remit payments?

Attachment and garnishment payments withheld should be remitted to the Department of Revenue every 30 days until the liability shown due on the attachment and garnishment together with accrued interest is paid in full.

Can my employer deduct the full amount of the attachment and garnishment from one check?

NC general statutes do not allow the Department of Revenue to require more than 10% of monthly gross salaries and wages to be deducted from paychecks. Other checks you receive, such as rents, accounts receivables, deposits and contract payments are not subject to the 10% limitation. The full amount of these types of payments that would otherwise be paid to you must be attached and garnished and remitted to the NC Department of Revenue.

When will the bank attachment and garnishment start?

Each bank has different policies regarding remittance of payment to the NCDOR. Please check with your bank for specific times and dates.

When will the wage attachment and garnishment start?

Your wage garnishment should be deducted on your next payroll cycle. Check with your payroll for verification.

Multiple Attachments and Garnishments

If the NC Department of Revenue sends my employer multiple attachments and garnishments, how should they respond?

Your employer must withhold 10% of the monthly gross salaries and wages due to you and remit it to the State. Your employer should pay out the oldest attachment and garnishment prior to moving to the next period. The Department will send an attachment and garnishment release letter to your employer once the final payment for the oldest attachment and garnishment has posted. Upon receiving a release letter for an older NCDOR attachment and garnishment, your employer should begin withholding for the next NCDOR attachment and garnishment.

How should my employer determine which wage garnishment to honor if I have multiple wage attachments (IRS, Child Support, etc.) in force?

The NC wage garnishment runs concurrently with other types of garnishments. By service of the NC State tax garnishment, 10% of your monthly gross salaries and wages must be withheld and submitted to the Department. This requirement is not offset by other wage attachments.

What should my employer do if after deducting the payments required by multiple garnishments, I am to receive no pay?

You should contact the Department of Revenue at 1-877-252-3252.

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Resolution

How is an attachment and garnishment released?

The Department of Revenue releases an attachment and garnishment when the total amount on the attachment and garnishment is paid. However, if an additional balance accrues on a delinquent account, the Department may issue another attachment and garnishment. If the Department issues an attachment and garnishment in error, it will be released as soon as the error has been verified. The Department mails attachment and garnishment release notices to the employer.

Can I pay the taxes rather than have my wages garnished?

Yes. Contact the Department at 1-877-252-3252 or visit our Internet site. Payment can be taken over the phone or online using bank draft, MasterCard or Visa credit/debit cards. Your employer must continue to withhold payments until receipt of an attachment and garnishment release letter from the Department.

How will my employer know if an attachment and garnishment has been paid in full?

Once the liability is paid in full, the Department sends an attachment and garnishment release letter to your employer. If the Department has issued multiple attachments and garnishments against you, separate release letters will be mailed for each attachment and garnishment. Your employer may also contact the Department if it believes that it is close to paying out the attachment and garnishment and needs a final balance.

How can I prove to my employer that the taxes have been paid in full?

Contact the Department at 1-877-252-3252 and ask that an attachment and garnishment release letter be sent to your employer. Your employer must continue to withhold payments until receipt of the attachment and garnishment release letter from the Department.

What if my employer fails to stop the attachment and garnishment after the balance is paid in full?

Your employer should return any amounts to you that it is still holding. Any overpayments remitted to the Department will be refunded directly to you.

I filed bankruptcy. Does this stop my attachment and garnishment?

If you have an attachment and garnishment in effect and you have filed bankruptcy, call (877) 252-3252 and inform the agent that you filed bankruptcy so your account can be handled appropriately. When you call, please have the bankruptcy case number issued by the court available.

 

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