Carolina Tax Resolutions provides tax relief for North Carolina Department of Revenue problems. Chapel Hill, Durham, & Raleigh NC.
Similar to the IRS, the North Carolina Department of Revenue (NC DOR) has specific policies in place for dealing with individuals who unpaid or un-filed taxes. The NC DOR offers several repayment options and alternatives for resolving an outstanding tax liability.
Installment Agreement
The NC Department of Revenue expects all taxpayers to pay any taxes owed by the April deadline, however, if you can’t pay your balance in full, the NC DOR may be willing to let you make payments through an Installment Agreement. To apply for a payment plan, you’ll need to complete Form RO-1033, Installment Agreement Request.
Generally, if you only owe a small amount or you need a short-term arrangement, the NC DOR doesn’t require any additional paperwork to approve your request. If you have a large tax liability or you need a longer repayment period, the Department of Revenue may require you to provide additional financial statements before you can qualify.
To qualify, you must:
-
Be current with all your tax return filings at the time you request the payment plan.
-
Pay in full any additional returns that come due during the repayment period.
-
Agree to an automatic bank draft from your checking or savings account.
-
Assume that any future tax refunds or NC Education Lottery winnings will be applied to your tax debt.
-
Agree to have a tax lien entered against your property for the duration of the repayment period.
North Carolina Offer in Compromise
The North Carolina Offer in Compromise Program makes it possible for taxpayers to eliminate their tax debt by making a lump-sum payment for less than the full balance owed. To make an Offer in Compromise, you must complete Form OIC 100 and give the DOR a 20% down payment towards the settlement proposal. The DOR grants an Offer in Compromise when one of five conditions applies:
(1) There is a reasonable doubt as to the amount of the liability of the taxpayer under the law and the facts.
(2) The taxpayer is insolvent and the Secretary probably could not otherwise collect an amount equal to or in excess of the amount offered in compromise. A taxpayer is considered insolvent only in one of the following circumstances:
a. It is plain and indisputable that the taxpayer is clearly insolvent and will remain so in the reasonable future.
b. The taxpayer has been determined to be insolvent in a judicial proceeding.
(3) Collection of a greater amount than that offered in compromise is improbable, and the funds or a substantial portion of the funds offered in the settlement come from sources from which the Secretary could not otherwise collect.
(4) A federal tax assessment arising out of the same facts has been compromised with the federal government on the same or a similar basis as that proposed to the State and the Secretary could probably not collect an amount equal to or in excess of that offered in compromise.
(5) Collection of a greater amount than that offered in compromise would produce an unjust result under the circumstances.
To find out if an offer in compromise might be a good solution for you, get in touch with Carolina Tax Resolution today. We are known for our thorough and comprehensive customer service. You can expect prompt responses and updates throughout every step of your case. Call Carolina Tax Resolutions for a FREE Consultation at 919-916-1000 or complete the contact form on this website.