Receiving notice of a tax lien from the IRS or the North Carolina Department of Revenue (NCDOR) can feel overwhelming. These liens are serious—they can affect your credit, block the sale of property, and lead to more aggressive enforcement action if left unaddressed.

This post breaks down what tax liens are, how they work in North Carolina, and most importantly—how to remove or avoid them with proper strategy.

What Is a Tax Lien?

A tax lien is a legal claim by a government agency (federal or state) against your property due to unpaid taxes. It doesn’t mean they’re seizing your property—yet—but it does give them first legal rights to it in the event of a sale or refinancing.

You can face a lien from:

  • The IRS (for unpaid federal income or payroll taxes)

  • The NCDOR (for unpaid state income, withholding, or sales tax)

How IRS Tax Liens Work in North Carolina

IRS liens arise automatically 10 days after they send you a final demand for payment—and you fail to respond. They then file a Notice of Federal Tax Lien (NFTL) publicly with your county’s Register of Deeds. In North Carolina, this:

  • Becomes visible to lenders, credit bureaus, and buyers

  • Can block real estate transactions

  • Stays in place until the full balance is resolved or the statute expires

NCDOR Tax Liens Are Just as Serious

The North Carolina Department of Revenue has its own lien process:

  • They’ll issue a notice and demand for payment

  • If ignored, they file a Certificate of Tax Liability (CTL) with the county

  • CTLs are public records and can also impact your ability to sell property or borrow

The NCDOR has aggressive collection authority and doesn’t always offer the same flexibility as the IRS.

How to Remove a Tax Lien in NC

There are four common ways to remove (or reduce the impact of) a lien:

1. Pay the Balance in Full

Obvious but effective. Once fully paid, the IRS or NCDOR will release the lien within 30 days.

2. Request a Lien Withdrawal

Available if the debt is paid in full or if you enter into certain direct debit installment agreements (for IRS liens only). This removes the lien from public record entirely.

3. Discharge of Property

If you’re selling a home and the lien is blocking the sale, you may qualify to have it removed from that specific asset. The debt still exists but the lien no longer clouds title.

4. Subordination

Lets other creditors jump ahead of the IRS/NCDOR in priority, making it easier to refinance or get a mortgage.

Can You Avoid a Tax Lien Altogether?

Yes—but only if you act before the lien is filed.

You may be able to:

  • Set up a payment plan or Offer in Compromise

  • Demonstrate financial hardship

  • Request Currently Not Collectible status

  • File timely appeals or protests

The Risks of Ignoring a Tax Lien

A lien isn’t just a piece of paper. If ignored, it can lead to:

  • Bank levies or wage garnishment

  • Seizure of property or vehicles

  • Major damage to your credit

  • Additional legal and recording fees

In North Carolina, once the lien is filed, it may stay on the public record for up to 10 years or longer.

How Polaris Tax & Accounting Can Help NC Residents

📍 We’re licensed Enrolled Agents with unlimited rights to represent you before the IRS
📞 We work directly with the IRS and NCDOR to resolve tax liens efficiently
📄 We help negotiate payment terms, penalty relief, and lien withdrawal options
📆 We protect your deadlines and keep you informed every step of the way

Related NC Tax Help Resources

Talk to a Tax Lien Specialist Today

📞 Call Polaris Tax & Accounting at 704-947-3178
🛡️ We resolve tax problems for clients across North Carolina
📍 No office visit required – remote help available statewide
⏳ Act before liens turn into levies. Your next step matters.