Other Forced Collection Actions

The forced collection of past due taxes occurs if an individual or business entity fails to follow the NC state tax laws. NCDOR may use such actions to collect unpaid taxes. These include attachments and garnishments, a certificate of tax liability (CTL), a jeopardy assessment, or a tax warrant.

For questions about a forced collection action that has been taken, the taxpayer may contact their local service center.

Tab/Accordion Items

A CTL places a judgment on any real or personal property held by a taxpayer, and it makes the liability public information. To get a clear title to the property, the CTL must be satisfied or resolved.

For more information, please review NC Gen. Stat. §105-242(c).

How do I get a CTL released?

Contact your local service center.

How do I have it removed from my credit report?

Once the CTL is satisfied and released at the Clerk of Courts’ office, the taxpayer needs to contact the various credit reporting agencies. Ask those agencies to remove it from their credit report. The NC Department of Revenue cannot have it removed.

Does a CTL prohibit me from having an installment payment agreement?

No. For more details, review the installment payment agreement information.

What is real or personal property?

Real property is any land and any buildings attached to it.

Personal property is anything that is not considered real property. Examples are vehicles, furniture, and any item considered to be personal effects or movable property.

NC General Statutes §105-241.23 authorizes the Department to immediately assess and collect any tax found to be in jeopardy.

During a jeopardy collection, the Department may use any of the collection remedies in NC General Statutes §105-242, and is not required to wait any period of time before using these remedies.

Why did I receive a jeopardy assessment?

A taxpayer may receive a jeopardy assessment if any of the following conditions are met:

  • The taxpayer is or appears to be planning to quickly leave the state or to hide to defeat a tax liability.
  • The taxpayer is or appears to be planning to quickly place property beyond the reach of the Department by removing it from the state, concealing it, dissipating it, selling it, or transferring it to other entities.
  • The taxpayer’s financial solvency appears to be imperiled.
  • The taxpayer’s financial solvency appears to be imperiled by continued business operations and refusal to pay collected trust taxes.
  • Past legal actions have not resulted in compliance.

What recourse do I have if the Department issues a jeopardy assessment against me?

Review NC General Statutes §105-241.23 to determine what options are available to the taxpayer.

For additional questions, contact the service center that issued the jeopardy assessment.

A tax warrant is a request to levy upon and sell any personal property owned by a taxpayer who has failed to pay tax, penalty, interest and fees that have been assessed by the Department. The warrant is issued to the sheriff of the county in which the taxpayer’s property or business is located in, or to any Revenue Officer or other employee of the Department charged with collection of taxes.

For more information, review NC Gen. Stat. §105-242(a).

What can be seized?

Any real property (land and any buildings attached) or personal property (anything considered personal effects or movable property, i.e., not real property) owned by the taxpayer.

What may happen if the balance is not satisfied with the tax warrant?

The balance will remain due. The Department may issue another warrant or take other measures to collect the taxes due.

If I receive a tax warrant, whom should I contact?

Review the warrant to determine who served the warrant. 

  • If a sheriff's deputy served the tax warrant, contact the sheriff’s office
  • If NCDOR personnel served the tax warrant, contact the taxpayer's local service center.