Guide to Resolving Georgia Tax Problems

The Georgia Department of Revenue performs many of the same functions as the IRS when it comes to taxpayers who owe back taxes. The mission of the Department of Revenue is as follows: “..to administer the tax laws of the State of Georgia fairly and efficiently in order to promote public confidence and compliance while providing excellent customer service”. In keeping with this mission, the Georgia Department of Revenue offers taxpayers a number of options for resolving their back tax situation. If you’re a resident of Georgia who owes unpaid or unfiled taxes, the DOR offers the following remedies for dealing with taxes owed.

Georgia Installment Agreement

If you’re not able to pay any of your taxes due, you can request an Installment Agreement to set up monthly payments. Installment plans can last no more than 60 months and interest continues to accrue until the tax bill is paid in full. Generally, you’re eligible to sign up for installment payments as long as you haven’t filed bankruptcy or made an offer in compromise and your taxes owed hasn’t been assigned to a collection agency. To request an Installment Agreement, you’ll need to complete Form GA-9645, which is available for download on the Georgia Department of Revenue website. The completed form should be mailed to the Department of Revenue’s Compliance Division at the address listed below: Georgia Department of Revenue Processing Center PO Box 740396 Atlanta, GA 30374-0396  There are a number of possible penalties you could face if you default on an Installment Agreement, including wage garnishment, attachment of your property and a levy of your bank account. It may be helpful to speak with a qualified tax professional to determine whether an Installment Agreement is your best option.

Negotiating an Offer in Compromise (OIC)

Taxpayers who can’t afford to pay their tax bill in full may be able to secure an Offer in Compromise (OIC). It effectively lets you settle your tax bill for less than what’s owed. The Georgia Department of Revenue typically grants an Offer in Compromise in situations where it seems unlikely that the full amount of the tax owed can be collected. You can apply for an Offer in Compromise if any of three scenarios apply:

• Doubt as to collectibility (You don’t think you can repay all of the taxes owed)
• Doubt as to liability (You don’t think you’re liable for the taxes owed)
• Economic hardship (You’re experiencing an economic hardship that would make it impossible to repay the liability in full)

To apply for an Offer in Compromise, you’ll need to fill our Form OIC-1 and Form CD-14C if you’re applying on hardship or collectability grounds. Completing the application process can be difficult and the Georgia Department of Revenue offers a free booklet on the Offer in Compromise process for taxpayers.

Request for Penalty Waiver

If a penalty has been assessed against you because of outstanding tax liability, you have the right to request a penalty waiver. To apply for a penalty waiver, you must send a written statement to the Department of Revenue explaining your reasons for not complying with the tax law. You’ll also need to submit Form TSD-3 with your request. You can send your request to the following address: Georgia Department of Revenue Taxpayer Services Division – Penalty Waiver PO Box 105596 Atlanta, GA 30348  An electronic request for a penalty waiver can also be submitted at the DOR website.

Our Simple Tax Relief Process