Garnishment

If you maintain a tax liability, the Department of Revenue may seek to resolve it through garnishment. The DOR may garnish bank accounts, contract or commission payments, or wages. It will remain in place until the total amount of liability has been garnished.

Certificate of Tax Liability

A Certificate of Tax Liability is a public notice of liability that is attached to any real or personal property. It is only lifted when the liability is resolved.

Any credit agencies that record a CTL in their reports are doing so independently of the DOR, and thus need to be contacted directly if the CTL is to be cleared from those reports.

Notice of Collection

You have failed to address a tax liability for long enough that an assessment has been made and finalized by the DOR, you will receive a Notice of Collection. This indicates that the DOR is going to pursue enforced collection actions, such as the filing of liens (CTLs) or levies.

Any enforced collection action taken against you can be remedied by paying your full liability, but there are also other options available, such as requesting an installment agreement. In the case of a CTL, you may be able to get it released if you can prove a reasonable condition for doing so (i.e. it was filed in error, it is creating economic hardship, etc.).

Offer in Compromise

If you are unable to pay your tax liability in full, you may qualify for an Offer in Compromise. However, this requires serious doubt regarding the collectability or true amount of your liability under the tax code, or that you have already made a comparable compromise with the federal government and had it accepted.

The DOR will consider an OIC separately from one made to the IRS.

Penalties and Interest

Failure to pay or file your taxes by their due dates can result in additions to your total liability in the form of penalties and interest. Each varies in amount by circumstance and the type of tax left unpaid. Current rates can be found here: https://www.ncdor.gov/taxes/individual-income-tax/penalties-and-interest

Power of Attorney

If you so choose, you may authorize a tax professional to represent you before the state. To do so, you must complete and submit the appropriate documentation.

Tax Warrants

Failure to pay or otherwise address liability as assessed by the DOR may result in the filing of a tax warrant. A warrant grants the legal authority to seize and sell property as a means of resolving liability.