Collection Options and Remedies

If a taxpayer receives a Notice of Collection, then an assessment against them has become final and collectible, and the account has been assigned for collection. If the liability is not paid, North Carolina General Statutes authorize the Department to pursue one or more of the following collection options under NC General Statutes §105-242:

  1. Attach and Garnish the taxpayer's wages, salary or bank deposits.
  2. Issue a Tax Warrant directing the sheriff or a designated employee of the Department of Revenue to levy upon and sell the taxpayer's property.
  3. File a Certificate of Tax Liability (CTL) - i.e., a lien on the taxpayer's property.
  4. Where criminal tax proceedings are initiated, request payment of taxes as a condition of any plea arrangement or as restitution upon any conviction.

If the Department pursues the collection options listed above, the following options or remedies are available to the taxpayer:

  1. The taxpayer can end the attachment and garnishment of their wages, salary, and bank deposits and the seizure of your property by making full payment of the assessed liability.
  2. The taxpayer can secure the release of a Certificate of Tax Liability (CTL) by making full payment of the assessed liability.
  3. The taxpayer may 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 tax liability and release of 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.
  4. The taxpayer may request to enter into an Installment Payment Agreement. 
  5. If criminal tax proceedings are initiated, the taxpayer should contact their attorney and the prosecutor to determine their options.

If a taxpayer wishes to pursue any of these options or remedies, please contact the Department at the number listed on the front of the Notice of Collection.

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