RALEIGH, N.C. – State Employees’ CU is rolling out an Income Tax Debt Repayment loan that will charge 5% interest on loans to repay unresolved balances on state income taxes.
The new loan program is being launched in partnership with the state’s Department of Revenue and the Office of State Personnel. The state government has agreed to waive a penalty fee of up to 35% on the unpaid balance of state taxes for qualified borrowers.
While more than 185,000 North Carolina taxpayers have unresolved tax balances totaling nearly $800 million, the average unresolved obligation is approximately $4,600, with 105,000 taxpayers owing less than $2,000. Under this new loan program, a State Employees’ member who owes $2,000 in back taxes and interest can expect savings of approximately $700 via the waiver of penalties and fees on the taxes. A member who owes $4,000 would save nearly $1,400 in penalties and fees on back taxes. Terms of the credit union loan will, in most cases, allow for payments of $50 to $125 per month.
The new program is being offered from Jan. 18 through April 30, when taxpayers will have an opportunity to repay past due taxes with Department of Revenue waiving unpaid penalties and collection fees.
