Refund Offset Frequently Asked Questions
A Federal Offset is the forwarding of any or all of a taxpayer's Federal income tax refund to the North Carolina Department of Revenue (the Department) to satisfy an outstanding liability.
A State Offset is the forwarding of any or all of a taxpayer's State income tax refund to satisfy an outstanding State tax liability. The refund can also be sent to another state or federal agency that has a claim against the taxpayer.
Federal Refund Offset: Common Questions
You must take one of the actions described below within 60 days from the date of the certified Notice of Intent to Offset.
- Pay the Debt: You must pay the full amount listed on the Notice of Intent to Offset. If payment is made after the "Interest Through Date" specified on the notice, please call 877-252 3252 for the updated amount.
- Pay using debit/credit card (MasterCard/Visa) or bank draft:
- Use the Department's online payment system.
- Contact an agent at (877) 252-3252 for assistance paying online.
- Mail your payment to the Department. We accept personal checks, money orders and official bank checks/cashier checks; cash is not accepted. Send along with the coupon at the bottom of the notice to:
- Garnishment and Payment Processing Unit
NC Department of Revenue
PO Box 27431
Raleigh, NC 27602-1168
- Pay in person at your local service center:
- You may use debit/credit cards (MasterCard/Visa), bank draft, personal checks, money orders and official bank checks/cashier checks; cash is not accepted.
- Pay using debit/credit card (MasterCard/Visa) or bank draft:
- Bankruptcy: For more information or questions, review the Bankruptcy Frequently Asked Questions page. Please consult your legal counsel to address specific questions.
You must do one of the following:
- Complete IRS Form 8379 from the IRS website
- Call the IRS at 1-800-829-3676
- Visit your local IRS office.
You may call 1-877-252-3252 to verify the amount owed to the Department of Revenue.
Tax preparers should submit the taxpayer's tax returns without the refund anticipation loan. When the refund is offset, the taxpayer will be notified regarding the amount of refund subject to offset.
If all of a taxpayer's accounts are in balance with the Department, and there are no active accounts with other State agencies, the Department will refund the overpayment to the taxpayer.
For more information or questions, review the Bankruptcy Frequently Asked Questions page.
Please consult your legal counsel to address specific questions.
State Refund Offset: Common Questions
Ask any questions, or resolve any issues, with the agency receiving the refund offset.
That agency’s contact information should be listed on the notice.
For more information or questions, review the Bankruptcy Frequently Asked Questions page.
Please consult your legal counsel to address specific questions.
This page was last modified on 05/05/2026