State tax agencies have been getting very creative in pursuing former residents for back taxes. There are specific issues that would give NC taxing authority, most likely the type of income
earned, that would create a taxing 'opening'. The concept is often called nexus.
States have long been preparing what the IRS calls 'substitute for returns
' using income information to calculate an income tax and create an assessment
. That assessment allows the state to collect on something (a tax debt has been created).
Often, the bank has to release funds to the tax agency within 21 days. If so, the funds have not been forwarded, just locked up by your bank. There will be time to pursue relief.
Because there was no tax return filed, many states do not start the statute of limitations
, so six years, sixteen years, they could pursue collection for years.
NC issues what they call a Certificate of Tax Liability
, or CTL, which acts as a lien
on your property. They have the unique creditor ability to create their own debts, issue a judgment, and collect it from people, all without ever going to court to pursue a judgment. I'll bet there is not a requirement that the CTL or follow up bank levy have to be sent to you (many states have this same weakness in their debtor-creditor law
that allows this kind of collection).
There are steps you can take yourself to pursue relief. The traditional request for state review is done with NC-242, Objection and Request for Review, http://www.dornc.com/downloads/nc242.pdf. This will likely take weeks, and by then obtaining release of your funds will have to be done directly with the state, as your bank will send the $$ they hold to them.
Faster relief may be available. We now offer a new service called Additional Services, which you may wish to consider. I can provide specific advice, which I will offer in a separate message.
Thanks for asking at Just Answer. I'm PDtax.