The department levies tax on a tax debt in the sense of Nc. Stat. 105-241.22, is at least 90 days late and is not subject to a phased payment contract. The department sends each taxpayer, 30 days before the charge is imposed, a letter that warns the taxpayer of the tax and tells the taxpayer how to avoid the fees. You and NCDOR are subject to strict requirements. You, the taxpayer, must maintain the agreement by filing and paying all of your tax returns for the duration of the contract. You must also list a current account or active savings account in the contract forms and authorize NCDOR to make planned payments directly from your account. If you miss the planned payments or if a payment is returned by your bank to NCDOR, the contract is late. A full list of requirements can be find on our Staggered Payment page. While the subject met the requirements to seek an agreement, the subject must also meet certain requirements for the duration of the subject contract. This includes NCDOR`s written notification of any changes to the agreement due to your finances, which is sent to you 30 days in advance. If the NCDOR believes that the interests of the state must be protected, it will issue you an NC Certificate of Tax Debt (CTL). This can be done even if the agreement is not late.
If you have any doubts about a possible CTL, you should deal with the NCDOR before entering into an agreement. NCDOR can and will take legal action against you if you have not complied with any of your contractual terms. The information obtained can indicate whether the agreement is still necessary or whether the confiscation of the entire debt is in danger. The agreement is in default if you are unable to meet the specified requirements or if future conditions may jeopardize the recovery of the debt. If, for some reason, the agreement obtains a default status, you cannot cancel that status. There are several requirements for the taxpayer and the department. Please check these requirements carefully before requesting an agreement. The taxpayer is not required to respond to this notification. However, the taxpayer must begin payment until the first day of payment on the disclosure of the insured. For faster processing, pay online.