Notice of Collection
This notice is sent when the taxpayer's total liability (tax due, penalties, and interest) is final and collectible. The notice ID is N0002203 or N0002204.
The Department previously sent the taxpayer an assessment, but the taxpayer did not pay in full. Review the Explanation section on the previous assessment for an explanation of the taxpayer's total liability.
Frequently Asked Questions
Respond to this notice immediately. A response includes:
- Pay the balance due shown on the Notice
Watch How to Pay a Bill or Notice video - Enter into an official Installment Payment Agreement on the outstanding balance due
Watch How to Request an Installment Payment Agreement video - If you do not have the ability to immediately pay the tax in full, and want to discuss other payment options, contact the Department at 1-877-252-3252 or your local service center
If you do not respond immediately, the Department will begin forced collection actions, and you may be charged a 20% Collection Assistance Fee. Examples of forced collection actions could include:
- Deducting 10% of the taxpayer's wages paid before deductions
- Freezing funds in the taxpayer's bank account
- Issuing certificates of tax liability (liens)
- Seizing personal or business assets
The NC General Statues require the Department to send a taxpayer a Notice of Collection, even if they are in an active Installment Payment Agreement.
Reminder: The Department will not take forced collection actions as long as you do not default on the Installment Payment Agreement.
If you already paid the amount shown due on the notice, you may have received this notice for one or more of the following reasons:
- The payment may have been charged to your bank account but not applied to your account with the Department. Please call 1-877-252-4967 for more information.
- You may still owe penalties, fees, and interest, even if the total tax has already been paid. Any amount you already paid is shown in the Less Paid section.
- Your total liability is for a previous period. The period is listed above the Tax column on the notice.
Where can I get more information?
Review this information on collecting past due taxes or call 1-877-252-3252 (toll-free) for additional questions.
Watch the Understanding Your Notice of Collection - Amount Shown Due but not Paid in Full video and review the Paying and Responding to Your Notice playlist for more videos on how to pay a bill or notice and request an installment payment agreement.
This page was last modified on 01/16/2026