Frequently Asked Questions about the Individual Income Tax Debt Payment Program

 

  1. How can a taxpayer participate in the Individual Income Tax Debt Payment Program?

    Contact one of the Department's Service Center locations located across the state.

  2. How does a taxpayer benefit from participating in the program?

    Taxpayers who pay the balance of tax and interest will have unpaid penalties and fees waived.

  3. How long does the program last?

    This time limited program begins on January 17, 2012 and concludes on April 30, 2012.

  4. Who can participate in the program?

    Taxpayers who have received a notice and have an unpaid individual income tax liability may be eligible to participate.

  5. Can a taxpayer pay only one year of liability if multiple tax years have unpaid balances?

    No. All assessed individual income tax liability must be paid for a taxpayer to participate in the program.

  6. Will all penalties be waived?

    The Department will waive all unpaid penalties except for a civil fraud penalty assessed pursuant to N.C.G.S. 105-236 (a) (6).

  7. What happens if a taxpayer participates in the program and fails to make a scheduled payment?

    As long as the balance of tax and interest is paid by April 30, 2012, a taxpayer will still have eligible penalties and fee waived.

  8. Can a taxpayer participate in the program if a Certificate of Tax Liability (state tax lien) has been recorded by the Department?

    Yes. The lien will not be satisfied until the tax and interest has been paid. However, at the taxpayer’s request, the Department will provide a conditional lien release letter if the taxpayer is attempting to borrow the funds from a financial institution.

  9. Will penalties and collection assistance fees that were paid prior to the start of the program be refunded if a taxpayer participates in the program?

    No. Only unpaid penalties and fee will be waived upon payment of tax and interest. Refunds will not be issued on previously paid penalties and fees.

  10. Can taxpayers that are the subject of an ongoing criminal investigation or prosecution related to individual income tax participate in the program?

    No.

  11. Can taxpayers that have been convicted of criminal offenses related to individual income tax participate in the program?

    Yes. If the conviction is not related to the tax year(s) the taxpayer wishes to pay through the program.

  12. Can a taxpayer that is currently in bankruptcy participate in the program?

    Taxpayers currently in bankruptcy should consult their legal counsel regarding participation in the program.

  13. Can a 2011 individual income tax refund be used as part of the payment agreement when a taxpayer participates in the program?

    No. A 2011 tax refund cannot be included in the payment plan for an unpaid balance. However, refunds may be automatically applied by the Department and the unpaid balance will be reduced by the amount claimed.

 

For more information, contact one of the Department's Service Center locations located across the state.

 

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