Wage garnishment can happen faster than most people realize—especially when both the IRS and North Carolina Department of Revenue (NCDOR) are involved. If you’re behind on taxes and live or work in North Carolina, here’s what you need to know—and how Polaris Tax & Accounting can help you stop it.
What Is Wage Garnishment?
Wage garnishment is a legal process where a portion of your paycheck is withheld by your employer and sent directly to a government agency or creditor—without your consent.
When it comes to taxes, both the IRS and the NCDOR can garnish wages without going to court. You’ll usually receive multiple notices before garnishment starts—but if you ignore them, action can move quickly.
How the IRS Garnishes Wages in NC
The IRS follows a specific administrative process:
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CP Notices (like CP14 or CP501) are sent for balances due
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Final Notice of Intent to Levy (Letter 1058 or LT11) is issued
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You have 30 days to respond before garnishment begins
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If no resolution is made, your employer receives Form 668-W and must begin withholding
The IRS doesn’t follow state limits—they use their own formula based on your filing status and number of dependents. This often results in a larger portion of your paycheck being taken than with a normal creditor.
How the NCDOR Garnishes Wages
North Carolina law allows the NCDOR to garnish wages without court approval. Once a tax debt becomes final, NCDOR can:
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Send a Notice of Collection
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Issue a Notice of Wage Garnishment to your employer
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Begin withholding up to 10% of gross wages per pay period
The garnishment continues until the debt is paid or you negotiate a resolution.
Can Both Agencies Garnish at the Same Time?
Yes, and it happens more than you’d think.
If you owe both the IRS and NCDOR, you may face overlapping garnishments. This can leave you with very little take-home pay—especially if you’re also behind on child support or student loans.
How to Stop Wage Garnishment in NC
You do have rights—but you need to act quickly. At Polaris Tax & Accounting, we help clients stop garnishments by:
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Filing past-due returns to prevent escalation
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Negotiating Installment Agreements or payment plans
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Requesting Currently Not Collectible (CNC) status with the IRS
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Filing appeals (like a Collection Due Process request)
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Exploring Offers in Compromise (IRS only)
For state issues, we work directly with the NCDOR to pause garnishments and negotiate manageable payment terms.
What Happens If You Ignore It?
Ignoring IRS or NCDOR wage garnishment can lead to:
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Tax liens on your home or vehicle
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Additional penalties and interest
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Seizure of bank accounts (levies)
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Referral to a third-party collection agency
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Difficulty renewing professional licenses
It’s easier—and cheaper—to act before garnishment begins. Once your employer starts withholding, it can take weeks to stop, even with resolution.
Related NC Tax Help Resources
Stop the Garnishment Before It Starts
📞 Call Polaris Tax & Accounting at 704-947-3178
🛡️ Licensed Enrolled Agent representation
🚫 Immediate action to pause or stop IRS/NCDOR wage levies
📍 Serving taxpayers across North Carolina