What This Notice Means and What to Do Next
When the Georgia Department of Revenue officially assesses a tax debt, it marks the start of the agency’s formal collection process. Prior to this, you may have received a Notice of Proposed Assessment, but at this stage, the assessment is finalized, and you must take action to avoid more aggressive collection efforts.
To get experienced guidance from a Georgia tax attorney, contact us at Wiggam Law today.
Key Takeaways
- The Department of Revenue sends a Notice of Proposed Assessment before sending an Official Assessment and Demand for Payment.
- Once you receive an Official Assessment and Demand for Payment, you have 30 days to pay or make other payment arrangements.
- Ignoring this notice can lead to liens, levies, and other enforced collection actions.
- Working with a Georgia tax attorney can help you protect your assets and find a suitable solution to your tax issues.
What is the Official Assessment and Demand for Payment?
The Official Assessment and Demand for Payment is the state’s final notice that you have a tax liability. You likely received a Notice of Proposed Assessment before this, and receiving a demand letter means that either your dispute of the debt was denied or you ignored the notice. Ignoring the Notice of Proposed Assessment ensures that the state’s proposed assessment becomes a final assessment.
At this point, the Department of Revenue has met the legal requirements for proving that you have a tax liability, and now that they’ve notified you, they can exercise their right to collect.
Which Tax Liabilities Lead to This Notice?
The Department of Revenue may send this for past-due individual income tax, corporate income tax, sales and use tax, withholding tax, and any other taxes administered by the state.
What This Notice Means
This notice marks your final chance to address your tax debt before the state begins taking steps to settle it via enforced collection efforts. Tax debt takes precedence over just about every other type of unsecured debt, and a taxpayer who ignores state tax agency notices may find themselves hit with liens and levies from the Georgia DOR.
Your Options After Receiving a Notice and Demand for Payment
What you do after receiving this notice depends largely on whether or not the Department of Revenue’s calculations are accurate. Before you do anything else, you should read this notice in full. It includes:
- The type of tax they are attempting to collect
- How much the total debt is
- How the debt is broken down into tax, interest, and penalties
- How you can pay
- Consequences for ignoring the notice
- How to appeal
After reading your notice in full, you should verify that the amount included is correct. You may want to cross-check it with your own tax returns and payment records. This can help you decide how to proceed.
If You Agree With the Amount Due
If the amount is accurate, you should take immediate steps to pay the tax debt off in full or make other arrangements. If you are able to pay in full, you can do so via the Georgia Tax Center or by check made payable to the Department of Revenue.
When paying in full is not an option—and for many, it simply isn’t—you can look into other payment arrangements. Both individuals and businesses may:
- Request installment agreements via the Department of Revenue. A payment plan must be no longer than 60 months, and your minimum monthly payment must be no lower than $25. There is a $50 administrative fee for auto-draft payment plans and a $100 fee for those who wish to pay via check. Note that interest and penalties will continue to accrue until the debt is paid in full.
- Consider a Georgia offer in compromise. This program, offered by the Department of Revenue, allows qualifying taxpayers to settle their tax liability for less than they owe. To determine whether or not a taxpayer qualifies, the DOR looks at a taxpayer’s financial information to figure out how much they could reasonably expect to collect from them. This is based on the taxpayer’s income, assets, and obligations. If the amount they could collect is lower than what the taxpayer owes, they may be open to an offer in compromise. Know that you’ll need to provide extensive financial documentation to apply, so you may want to discuss whether or not you’re likely to qualify with a tax attorney.
The DOR is typically more likely to work with individuals or out-of-operation businesses than in-operation businesses. If your business has assets and is continuing to operate, the DOR is very unlikely to accept an offer in compromise, but may be willing to do payments if you show that you’ve taken measures to avoid getting into new tax debt. If dealing with business tax debt, contact an experienced business tax attorney.
If You Disagree With the Amount Due
You’ve pulled your tax records, and the amount listed on the notice doesn’t match up. If you attempted to contest the amount with the Department of Revenue and they stood by their original assessment, you can still seek resolution with the Georgia Tax Tribunal. This is an independent agency that reviews Department of Revenue decisions. Move quickly, though; you only have 30 days to request a hearing.
What Happens If You Do Nothing
You obviously have options, whether you agree or disagree with the bill sent by the Department of Revenue—but the option you should definitely avoid is doing nothing. The Department of Revenue is open to other payment options, like an installment agreement or offer in compromise, but they can’t give you those options if you don’t reach out to them and ask about them.
If they do not hear from you, they will assume that you are not paying. This opens the door to a state tax execution, also known as a state tax lien. This gives them legal claim to all of your assets until your tax debt is paid, adding a 20% fee to your final bill. If the tax debt remains unpaid, they may seize your bank account, garnish your wages, or seize other assets to cover your tax liability. Throughout all of this, interest and penalties continue to add up. Ignoring this notice is the worst way to handle an unexpected tax bill.
When It’s Time to Talk to a Tax Professional
If you feel blindsided by the Official Assessment and Demand for Payment, you may not know how to check if the amounts are correct, how to dispute the amount with the Georgia Tax Tribunal, or which payment options are right for you. The time you spend worrying about your options and their potential outcomes cuts into the time you have available until the state places a lien on your assets.
Consider scheduling a consultation with Wiggam Law if you don’t know what to do next, are unsure whether or not the amount you owe is accurate, or need to find out if you qualify for any payment options. Working with an attorney may help you protect your assets and avoid the stress that comes with enforced collection actions.
Received an Official Assessment and Demand for Payment? Figure out your next steps with the tax professionals at Wiggam Law. Call us at 404-609-1300 or contact us online to schedule a consultation.
Frequently Asked Questions
How long do I have to respond to the Official Assessment and Demand for Payment?
You have 30 days to pay the amount due in full, set up other payment arrangements, or request a hearing with the Georgia Tax Tribunal.
Can I still dispute the amount owed?
If you disagree with the amount owed, you can request a hearing with the Georgia Tax Tribunal.
Will this notice affect my credit or show up in public records?
This notice is not public record. However, ignoring it may lead to a state tax execution, which is public record.
What if I can’t afford to pay the full amount?
You may qualify for a payment plan or an offer in compromise. To prevent a lien or levy, you should look into these options and begin the process within the 30-day window.
How can I appeal the assessment?
If the amount assessed is inaccurate, you may dispute it with the Georgia Tax Tribunal.
Sources:
https://dor.georgia.gov/official-assessment-and-demand-payment-letter
https://dor.georgia.gov/taxes
https://dor.georgia.gov/payment-plans
https://dor.georgia.gov/offer-compromise