How Do I Get Out of Tax Trouble in North Carolina?

North Carolina is located on the East Coast and has the 9th largest population in the U.S. and is still growing. This state is noted for its mild weather and pocket-friendly cost of living. Additionally, it is a beautiful state that boasts majestic mountains and beautiful beaches, which lend beautifully to a great quality of life for residents and visitors alike.

Apart from offering an idyllic environment for raising a family, North Carolina is also considered a business-friendly environment. This is validated by the number of awards, recognitions, and accolades that she has received in recent times. Some of those recognitions and accolades include the following:

  1. The number 1 state for Business (CNBC, 2022)
  2. State of the year in 2022 (Business Facilities
  3. State with the Best Business Climate in 2021 (Site Selection)
  4. Best State for Business in 2022 (Chief Executive Magazine)

When it comes to taxation, North Carolina is known for going easy on businesses by having the lowest income tax rate, additionally; the state is also noted as having the lowest local and state business tax burden.  You can click here for more information on the business climate in the state.

Despite the fact that the state is known as a great place to conduct business (thanks to its low taxation policies and other enabling factors), it is not unheard of that people have tax issues in the state. For this reason, this article will answer the question of how to get out of tax trouble in North Carolina, so stay with us.

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Tips for Getting out of Tax Trouble in North Carolina

If, for whatever reason(s), you find yourself in a fix with your taxes or related issues, it is very important that you act fast to ensure that you fix the problem. This is necessary because any issue with taxes that’s left unattended most often escalates to bigger problems.

Find below some steps that you can take to take care of the issue:

  1. Assess the Situation – The first step in solving this issue is to examine the type and magnitude of the issue. Pinpoint the exact problem; do you owe back taxes? Do you have unfiled returns or are you facing an audit? Know exactly what the issue is as this will inform the next step to take.
  2. Seek Expert Advice – Once you’ve ascertained what the problem is, it is recommended that you consult expert tax personnel. You can seek counsel from either a CPA (Certified Public Accountant), Tax Attorney or an EA (Enrolled Agent). These professionals understand the nitty gritty of North Carolina Taxation laws and policies and can help you navigate to find a solution and also provide representation in case it is needed.
  3. File Outstanding Returns – If you discover that you have unfiled returns, the best thing to do is to immediately file them. Procrastination in this regard can cause you more problems.
  4. Take Care of Back Taxes – If it so happens that you owe back taxes, endeavour to pay up as fast as possible to avoid consequences. Find out from the experts how you can resolve the debt. They can help you negotiate a settlement or set up a payment plan. Additionally, they can look into the possibility of getting tax relief from the North Carolina Department of Revenue.

You can visit this site: to learn more about tax relief in North Carolina.

  • Respond to Notices – Ensure that you do not ignore any notice from the North Carolina Department of Revenue about any tax issues. Failure to respond to notices only compound issues and increase the penalties and consequences.
  • Look out for Opportunities for Compromise – North Carolina Department of Revenue has a program known as Offer in Compromise (OIC). This allows a defaulting taxpayer to pay less than the actual amount they owe. It is an option that allows a taxpayer to negotiate either an instalment plan or a one-time payment for offset their debt.
  • Stay Informed – Make sure that you stay informed about laws and regulations as it pertains to taxes and levies in the state. You can always visit the state revenue department website to stay updated.
  • Maintain Accurate Records – Ensure that you keep proper records of everything that has to do with your taxes because these records can come in handy in the event of disputes or tax issues.
  • Appeal Assessments or Audits – You have the right to appeal any audit or assessment conducted by the state revenue department.  Every state has procedures for filing such cases. Find out what the procedures is for North Carolina and follow them for presenting your case.
  • Seek Legal Representation where Necessary – There are situations where the issue is a criminal charge or quite complex. In such a situation, your best bet is getting a North Carolina tax attorney to handle the situation. This will ensure that you have adequate legal representation and an advocate that understands the complexities of the law and can fight for your interest.

Benefits of Hiring a Tax Attorney

Before we round up this piece, we will share briefly, the benefits of hiring a tax attorney when faced with taxation issues:

  1. They will help you prepare for tax audits and also provide expert counsel on how respond to questions from IRS to reduce potential liabilities.
  2. They help you face and successfully resolve disputes with IRS.
  3. Reduction of the stress and consequences from Internal Revenue Service bank levy or wage garnishment and even stop enforcement action.
  4. Provision of expert guidance for filing for the OIC (Offer in Compromise) program.
  5. Getting best result for IRS Penalty Abatement.
  6. Legal representation in the event of criminal tax investigation or charges.


Facing tax issues or problems can be very stressful; sometimes it can even lead to grave penalties. However, taking proactive steps can help you mitigate the stress and its consequences. We have shared tips that will help you get out of any tax trouble that you have in North Carolina.

The tips we have shared in this article apply not only to NC but to all the states in the country. The recommendation is to hire a tax attorney if you have any notice or summons from the IRS or the revenue department of your state of residence. These legal experts will help you navigate the complexities of taxation laws and regulations and get out of trouble.

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