NC Debt Setoff Program - Attachment of NC State Refund

If you have received a notice of a debt owed to Randolph County that gives you thirty (30) days to pay the bill or request an appeal hearing before a Debt Setoff Officer. This means that we are preparing to submit this debt to the North Carolina Department of Revenue for collection.

If the recipient of the notice has not responded within thirty days of the date on the notice, any amount due over $50.00 can be submitted to the officially designated clearinghouse for an attachment of any state refund that the debtor may apply for within the next ten (10) years. These submittals are sent to the clearinghouse weekly.

The State matches against refunds and sends these payments to Randolph County twice each month. The state will send a notice to the taxpayer if they reroute a refund or part of a refund to the County. If the State does take all or part of a refund because of a debt setoff filed, they keep a collection assistance fee of $5.00 and an additional $15.00 fee for the clearinghouse. These fees are paid first out of any funds attached. 

Occasionally the tax office will receive payment from the state after the taxpayer has voluntarily paid everything due under the attachment. Upon receiving these funds, the tax office deposits them in our bank account. If there are other bills due for the taxpayer at that time, the funds will be used to pay those bills. If there are NO bills due, or if there are extra funds after paying any other taxes due, a refund is issued to the taxpayer. The refund is typically mailed to the taxpayer within 20 days.

For further information about your NC State refund that has been sent to our office, contact Debra Hill by phone, 336.318.6500, or e-mail.