Quick Answer:
Yes. Both the IRS and the North Carolina Department of Revenue (NCDOR) can garnish your wages if you owe back taxes and haven’t made payment arrangements. In Lake Norman, NC, garnishment can take a large percentage of your paycheck until your tax debt is resolved. Acting quickly with a licensed tax professional can stop garnishments and protect your income.

How IRS Wage Garnishment Works

The IRS can garnish wages without going to court. If you don’t respond to notices or make arrangements to pay, they will send your employer a wage levy notice requiring them to withhold part of your pay.

The IRS can take a substantial portion of your paycheck—sometimes leaving you with just enough for basic living expenses. This continues until:

  • The debt is paid in full

  • You set up an installment agreement

  • You qualify for an Offer in Compromise

  • You’re granted Currently Not Collectible status

How NCDOR Wage Garnishment Works

In North Carolina, the NCDOR is just as aggressive—sometimes even faster than the IRS. Once they issue a garnishment order to your employer, the withholding will continue until your tax debt is satisfied or you make alternative arrangements.

NCDOR wage garnishments can take up to 10% of your gross pay each pay period.

Warning Signs You’re at Risk

You may be close to garnishment if you’ve received:

  • IRS Final Notice of Intent to Levy (Letter 1058 or LT11)

  • NCDOR Collection Notice or Garnishment Warning

Once these notices are issued, you have a short window—often 30 days or less—to act before garnishment begins.

How to Stop Wage Garnishment in Lake Norman, NC

You have several options to prevent or stop garnishment:

  1. Pay in Full: Clears the debt immediately.

  2. Installment Agreement: Spread payments over time.

  3. Offer in Compromise: Settle for less than the full amount (if eligible).

  4. Penalty Abatement: Reduce the total you owe by removing certain penalties.

  5. Currently Not Collectible: Pause collections due to financial hardship.

Why Acting Fast Matters

Once wage garnishment starts, stopping it can take time—even if you set up a payment plan. The IRS or NCDOR must release the levy in writing before your employer can stop withholding.

How Polaris Tax & Accounting Helps Lake Norman Residents

We act quickly to:

  • Contact the IRS or NCDOR on your behalf

  • Negotiate payment arrangements that fit your budget

  • Request a release of garnishment as soon as possible

  • Build a tax strategy to prevent future collections

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If you’ve received an IRS or NCDOR garnishment notice—or think one is coming—don’t wait until your paycheck is cut. Contact Polaris Tax & Accounting today to protect your income and resolve your tax debt before it escalates.