Attachments and Garnishments for Taxpayers

A bank garnishment is a legal document. It requires a bank or financial institution to put a hold on an account and deduct 100% of the funds in the account, up to the amount shown due on the notice.

It is not eligible until your account is paid in full or your bank sends the funds to the Department.

A wage garnishment is a legal document sent to employers when a taxpayer has an unpaid tax liability. It requires them to withhold funds from the taxpayer’s wages, salaries, or non-wage payments (contract payments, commissions, rents, royalties, etc.).

Employers must submit those funds to the Department to pay that unpaid tax liability.

• The percentage amount deducted depends on the type of funds.
• A NC wage garnishment runs at the same time as other types of garnishments.
• Other wage garnishments do not offset a NC garnishment.

Maybe. It may be eligible for release or removal if:

• You pay the tax liability in full.
• You have not defaulted on a previous installment agreement for the same period(s).
• Your installment agreement is at least 10 percent of your gross wages and/or salaries.

Call 1-877-252-3252. Ask the Department to send a garnishment release letter to your employer. Your employer must continue making payments until they receive the garnishment release letter.

A garnishment release letter is sent to the employer once total liability is paid in full. Upon receiving the release letter, the employer should stop garnishing.

If you have a garnishment in effect and you have filed bankruptcy, call (919) 754-2542. Tell the agent that you filed bankruptcy so that your account is handled appropriately. 

When you call, please have the bankruptcy case number issued by the court available.