What are the consequences to the employer for refusal to honor the garnishment?
A person who is in possession of intangible property that is subject to attachment and garnishment is the garnishee and is liable for the amount the taxpayer owes. The liability applies only to the amount of the taxpayer’s property in the garnishee’s possession, reduced by any amount the taxpayer owes the garnishee. If a garnishee fails to respond to a garnishment, 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 NC Gen. Stat. ยง105-241.9. 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
