Collection Assistance Fee Frequently Asked Questions

The law defines tax, penalty, and interest as tax debt (also known as the total amount due). 

Multiply the amount of the unpaid tax debt by 20% to calculate the fee.

After the tax is overdue for at least 60 days.

The Department imposes the fee on a tax debt that is collectible as defined by NC Gen. Stat. §105-241.22, is at least 60 days overdue, and is not the subject of an installment payment agreement.

Within 60 days after the debt becomes collectible:

• Pay the entire balance due online.
• Establish an Installment Payment Agreement with the Department.

Note: Defaulted installment payment agreements may result in the addition of the fee.

Yes. A wage garnishment is a forced collection action.

Reminder: The fee applies to the amount of the tax debt that remains unpaid as of the day the fee is imposed.

No. The Collection Assistance Fee is a fee, not a tax, and is not subject to formal review. 

Why? The Collection Assistance Fee is imposed after the tax debt is final and collectible. A request for review of a tax debt must be made before the tax debt becomes final.

Contact a case resolution specialist if you think you do not owe the fee. They will review the matter.

• If the Department determines that the fee was imposed in error, then they will remove the fee.
  • You must explain why the fee does not apply and provide documentation to support your explanation.
  • For example, if you establish that you paid the tax debt in full before the fee was assessed, then the fee does not apply and will be removed.

Contact your local service center to speak with Department personnel about your account.

Review information about the formal tax assessment review process.

Maybe. The Department may waive the fee if you establish special circumstances that justify the waiver. 

To request a waiver, write a letter explaining why the Department should waive the fee. 

Send the letter to:

North Carolina Department of Revenue
Attn: Director of Collection Division
PO Box 27431
Raleigh, NC 27611

Maybe. The Department may refer an account to a private collection agency or private attorney in limited circumstances. 

The taxpayer will be notified if their account is selected for referral.