Ga Dept Of Revenue Atlanta Ga | Ga Dept Of Revenue Compliance Division
Tax Resolution options for Taxes owed in Georgia State
Common GA Tax Resolutions
Collection of state taxes and income tax is the responsibility of the Georgia Department of Revenue. When tax liabilities are owed because of a taxpayer filing tax returns without payment or an audit assessment, the Department of Revenue sends an Official Assessment through mail. The taxpayer gets 30 days to make a payment or appeal before official evaluations. If the taxpayer does not make payment or appeal within 30 days, then the DOR will issue a state tax execution and impose a 20% collection fee. The DOR keeps a record of State Tax Execution in the public record of the county, which in turn serves as a lien on the property of the taxpayer. Moreover, post issuance of a State Tax Execution, the DOR might start forceful collection actions.
Forceful collection actions involve garnishment, the seizure and selling of personal property along with levies placed on the bank accounts, the use of agencies for collection and treasury refund offsets. Thus, the taxpayers must pay taxes to try to solve their owed liabilities. Taxpayers owing delinquent income tax to the State of Georgia have some major options available for reaching a good resolution. Even if not exhaustive, here are some options available:
Payment Agreement: A payment agreement is a kind of arrangement where the taxpayer makes a deal with the Department of Revenue for making monthly payments until they make full payment of their due tax liabilities. In general, the DOR offers payment plans or instalment agreements for up to 60 months. Taxpayers should make payment off the balance which also includes the interest and the penalties within 60 months.
Offer in compromise: This option is an agreement where the taxpayer decides to make a payment of a lump sum amount for settling down the whole tax liabilities. This option is almost the same as the Offer in Compromise program offered by the IRS. Not every taxpayer has the eligibility standards as the DOR has some specified needs that the taxpayer should meet. Taxpayers in several cases can end up settling down their tax responsibilities for an amount that is less than what they owe.
Penalty Abatement: Penalty Abatement is a request asked to the DOR for waiving some, or all of the assessed tax penalties. As to the IRS, a reasonable cause should exist. In simple words, willful neglect or disregard law is not a reasonable cause. A reasonable cause exists when any circumstances outside the control lead of the taxpayer results in non-compliance.
Georgia Department of Revenue Contact Information
Individual Inquiries: (404) 417-2122
Business Inquiries: (877) 423-6711
General Inquiries: (877) 423-6711
Collections: (404) 417-6543
Individual Audits: (404) 417-6501
Website: Georgia Department of Revenue
Alternative options
Innocent Spouse relief: The State of Georgia provides relief from joint liabilities for some taxpayers who have filed joint returns. Innocent Spouse Relief is available in some circumstances to those taxpayers whose taxes due are attributable to their spouse. Taxpayers who file jointly are responsible for the joint tax liabilities. Therefore, in some situations, the DOR might give relief to one taxpayer on the joint tax return if or she is not liable for failure to pay or report the tax due on any joint income tax return.
- A taxpayer should meet the below-given conditions for becoming eligible for Innocent Spouse Relief:
- A joint tax return that results in extra tax liabilities as the income of one person was reported improperly or not at all reported.
- An individual looking for relief can prove that he or she had no knowledge and cause to know that the income was not reported or is wrongly reported.
- Under any circumstances, it is not fair to hold the person responsible for tax on the omitted or improperly reported income.
- The taxpayer has obtained relief from Federal taxes owed under Section 6015 of the Internal Revenue Code.
The DOR in general does not consider a person for Innocent Spouse Relief until the individual is treated as an Innocent Spouse under the IRS guidelines. Thus, for requesting Innocent Spouse Relief taxpayers are instructed to contact the DOR at 877-423-6711, and the information required for submitting a relief request will be given to them. The taxpayer should offer documentation establishing the IRS granted relief for the tax period in question.
Appeal rights: The taxpayer might appeal Proposed Assessments through the internal DOR protest procedures. Furthermore, taxpayers might appeal Official assessments and State Tax liens to the GTT. The GTT in general has jurisdiction over the appeals of the tax matters that involve the DOR. It involves the authority to review the decisions of the DOR that concern all of Georgia’s taxes. Taxpayers can make further appeals to the decision of the GTT to any local Georgia superior court. Moreover, under some circumstances, taxpayers can appeal directly to a Georgia superior court.
Challenging the assessment / State tax execution:
Proposed assessments: If the taxpayer has any proposed assessment for extra income tax due, they can file a protest with the DOR within 30 days from the date of the proposed assessment. Taxpayers can make requests online through their Georgia Tax Centre accounts or by mail. Taxpayers cannot appeal proposed assessments to the Georgia Tax Tribunal.
Official assessments: Official assessments can be appealed to the Georgia Tax Tribunal or in a local Georgia Superior court within 30 days from the date of issuance of the official assessment notice.
State Tax Implementation: When a taxpayer does not appeal or go for an official assessment within 30 days, then the DOR can issue a state tax execution. The taxpayer can then appeal for this action with either the GTT or any appropriate Georgia Superior court.
Taxpayers can obtain extra information about filing appeals with the GTT on the website. While taxpayers can file in Georgia Superior Court, there are certain needs for doing so. Taxpayers thinking of considering these options must consult with a good attorney.
The Georgia Voluntary Disclosure Agreement
The Department of Revenue has a voluntary Disclosure Agreement program made for taxpayers who do not have contact with the DOR and have unfiled or unpaid taxes. When these taxpayers come forward, they will get a waiver of all penalties and a greater time limit for paying off their owed taxes. The DOR refers to this extended period as the “look back period” which is usually three years.
Taxpayers who think they are eligible for this program must apply through mail or email. Taxpayers can get more information on the process of application and processes for filing a VDA program.
This is an option which is not so expensive. Taxpayers with significant personal liabilities along with taxes owed might want to consider this. In general, taxpayers can discharge some of the owed taxes through the bankruptcy process. Thus, taxpayers must contact an experienced tax and bankruptcy attorney to pursue this option.
A taxpayer needs to first find their legal rights in Georgia law concerning the statute of limitation rules for collecting unpaid taxes. In Georgia, the DOR has seven years from the date of assessments to file a lien if in case the assessment was issued before February 20, 2018. The DOR has five years from the date of assessment for filing a tax lien of the assessment was issued on or after February 20, 2018. Once the DOR makes filing of a tax lien, they have ten years from that date for collection of unpaid taxes. The 10-year time clock might be paused under some circumstances. For instance, when the taxpayer is in payment agreement with the Department of Revenue or when the taxpayer filed for bankruptcy.
The DOR releases tax lien after they get confirmation about the payment of past due liabilities in complete amount or satisfied through an approved offer in compromise payment. But you might be able to obtain a partial release or a lien subordination.
Practical considerations
As a relevant top, the taxpayer must not hesitate to raise disagreements with any supervisor within the DOR. Most often a different person and the authority and experience of any supervisor can assist in resolving the tax problems amicably.
In addition, Georgia has a Taxpayer Resolution Unit that acts to make sure that taxpayer rights are protected and that they get on-time and courteous services from the DOR. The taxpayer resolution unit states that if every administrative option has been exhausted, they can assist in facilitating quick and equitable solutions. Taxpayers can contact the Taxpayer Resolution Unit at taxpayer.resolution@dor.ga.gov.
Conclusion
Taxpayers have several options for resolving the pending tax liabilities with the State of Georgia. Thus, taxpayers must resolve the taxes owed much sooner than making late. The longer any taxpayer takes to resolve the unpaid tax liabilities, the higher the penalties and the interest. Thus, taxpayers must consult with a tax professional having experience with the DOR Georgia. Our tax professionals can assist taxpayers in navigating possible options and getting the right plan of action.