Yes, if your Bankruptcy case is still open and pending, the NCDOR will not hold or offset your refund to any outstanding liability.
Yes, the Bankruptcy only protects you for liabilities incurred up to the date you file bankruptcy. From your bankruptcy petition date forward, you are required to file and pay all states taxes as they become due.
The Department will not agree to an installment payment agreement if you are still in a current pending bankruptcy case.
If you choose to voluntarily send payments to the Department, you may send them to the following address:
Contact the Department at (919) 754-2542 to verify that it has received notice of your bankruptcy filing. If the Department has received notice of your bankruptcy filing, then upon completion of your bankruptcy you will receive either a dismissal or a discharge from the courts.
A dismissal will allow all liabilities not paid during the bankruptcy to immediately return back to active collections.
A discharge has certain exceptions that allow some liabilities to return to active collections. Below is a list of the most frequent items:
- Trust fund taxes (i.e., Sales and Withholding taxes)
- Income taxes last due (including extensions) within 3 years before the petition date
- Liabilities due to unfiled or fraudulent tax returns
This list is not all inclusive. It is only a list of the exceptions seen most often. These items will return back to active collections at the order for discharge.
Consult your legal counsel to address specific questions regarding a dismissal or discharge.
If you are currently in an active bankruptcy, please mail tax returns to the following address:
Why is a Certificate of Tax Liability (CTL) still showing on my credit report, or county tax records, after my bankruptcy case has been closed?
A discharge in bankruptcy provides relief to the individual debtor in the bankruptcy case. It does not provide relief to the property. For this reason, a CTL will remain in place until it is satisfied upon sale of the property.
Contact the Department’s Bankruptcy Unit immediately at (919) 754-2542 to verify that it has received notice of your bankruptcy filing.
Once the Department receives notification of a bankruptcy filing, your garnishment will be released. Payments that were garnished AFTER the petition date may be refunded upon written request.