Collection Options and Remedies
Collection Options
Taxpayers that receive a Notice of Collection have an assessment against them that has become final and collectible. If this unpaid liability is not paid, collection officers work the account.
NC General Statutes §105-242 authorize the Department to pursue any of the following collection options:
- Attach and garnish the taxpayer's wages, salary or bank deposits.
- Issue a tax warrant that directs the sheriff, or a designated employee of the Department of Revenue, to levy upon and sell the taxpayer's property.
- File a certificate of tax liability (CTL) - i.e., a lien on the taxpayer's property.
- In civil or criminal court cases, request payment of taxes as a condition of any plea arrangement or as restitution upon any conviction.
Remedies
If the Department pursues the collection options listed above, the taxpayer may:
- Pay the assessed liability in full.
- This ends the attachment and garnishment of their wages, salary, and bank deposits and the seizure of your property.
- This will release a certificate of tax liability (CTL).
- Seek the release of a 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 unpaid liability and releasing 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.
- The taxpayer may request to enter into an installment payment agreement.
- In civil or criminal court matters, contact your attorney and the prosecutor to determine any options.
If a taxpayer wants any of these options or remedies, please contact the Department at the number listed on the front of the Notice of Collection.