§ 105‑242.1.  Procedure for attachment and garnishment.

(a)       Notice. – G.S. 105‑242 specifies when intangible property is subject to attachment and garnishment. Before the Department attaches and garnishes intangible property in payment of a tax, the Department must send the garnishee a notice of garnishment. The notice must be sent in accordance with the methods authorized in G.S. 105‑241.20 or by registered or certified mail. The notice must contain all of the following information:

(1)       The taxpayer's name, address, and social security number or federal identification number.

(2)       The type of tax the taxpayer owes and the tax periods for which the tax is owed.

(3)       The amount of tax, interest, and penalties the taxpayer owes.

(4)       An explanation of the liability of a garnishee for tax owed by a taxpayer.

(5)       An explanation of the garnishee's responsibility concerning the notice.

(b)       Action. – Within 30 days after receiving a notice of garnishment, a garnishee must comply with the garnishment or file a written response to the notice. A written response must explain why the garnishee is not subject to garnishment and attachment. Upon receipt of the written response, the Department must contact the garnishee and schedule a conference to discuss the response or inform the garnishee of the Department's position concerning the response. If the Department does not agree with the garnishee on the garnishee's liability, the Department may proceed to enforce the garnishee's liability for the tax by sending the garnishee a notice of proposed assessment in accordance with G.S. 105‑241.9.

(c)       Release. – When the Department releases a garnishee from liability, the Department must send the garnishee a letter of release. The letter must identify the taxpayer to whom the release applies and contain the identifying information about the taxpayer that is required under subsection (a) on a notice of garnishment. (2007‑491, s. 30.)