TAX NEWS - August 2009

State of Georgia tax: Taxpayer Advocate

Whether you file a 500EZ or a complex corporate return, you will benefit from knowing your rights as a taxpayer.

The Office of the Taxpayer Advocate is an independent service within the Department of Revenue whose mission is to resolve complex and ongoing individual and business tax problems and to assure that all rights set forth in the "Taxpayer Bill of Rights" are upheld.

The Taxpayer Advocate not only helps resolve taxpayer disputes, but in addition, determines the cause of the problem to assure there is no systemic problem that might affect other taxpayers. If a systemic problem is discovered, we notify the Commissioner and the Director of the applicable division in order to resolve the issue.
 
PLEASE NOTE THAT THE OFFICE OF THE TAXPAYER ADVOCATE IS NOT A SUBSTITUTE FOR THE PROCEDURES OUTLINED IN THE FORMAL APPEAL PROCESS EXPLAINED LATER IN THIS SECTION. WE CANNOT REVERSE LEGAL TAX DETERMINATIONS. THE TAXPAYER ADVOCATE SHOULD ONLY BE CONTACTED AFTER THE NORMAL APPEAL PROCESS HAS NOT RESOLVED THE DISPUTE.



WHEN SHOULD I CONTACT THE TAXPAYER ADVOCATE?

Your initial contact should be with a Department representative at the phone number or address at the top left-hand section of the notice.

If, after your contact with a Department representative, your problem has not been resolved, ask to speak with a manager in that division. If your problem has still not been resolved after speaking with a manager, contact the Taxpayer Advocate.

If you do not receive a response from the Department within forty-five days after making a written or verbal protest of the assessment, contact the Taxpayer Advocate.

If you are aware of a systemic problem that affects a significant number of taxpayers, contact the Taxpayer Advocate.

If you have suggestions for improvement of Department processes, contact the Taxpayer Advocate.

 

WHAT INFORMATION DO I NEED TO PROVIDE WHEN I CONTACT THE TAXPAYER ADVOCATE?

The following information is needed to review your case:

- Social Security Number or State Tax Identifier
- Type of Tax
- List of Persons to Whom You Have Spoken Concerning Your Problem
- Description of Problem
 
 

ASSESSMENT NOTICES & THE APPEAL PROCESS
 
This section describes the types of notices used in the State tax appeal and collection process and the appropriate appeal actions to be taken at each stage. Please note that, although the Department issues several types of notices throughout the collection process, only the Official Notice of Assessment and Demand for Payment is required by law prior in order to issue a State Tax Execution.


Proposed Assessment Notice

This notice is generated as a courtesy. It signifies that the Department has obtained or discovered information from the return or other sources that indicate additional tax may be due.

You have 30 days either to pay this proposed liability, make payment arrangements or send a written letter of protest stating why you do not agree with the assessment. Include any documentation to support your protest. Mail the protest to the address at the top left-hand section of the notice. Upon timely receipt of your written protest, the assessment process will be held in abeyance until your protest is reviewed and a ruling is made by the Department. An acknowledgement letter will be mailed notifying you that we have received your correspondence.
 
Upon completion of the review of your protest, the Department will notify you of their ruling. If you receive an adverse ruling, payment in full is due or you can make payment arrangements. If payment in full is not made, the Department will issue an


Official Assessment and Demand for Payment Notice

This notice is the official ruling of the Department pertaining to a person's tax liability. Payment in the full amount of tax, penalty and interest or an appeal, if you still disagree, must be made within 30 days. You have appeal rights under the Administrative Procedure Act or through the Superior Court in your county of residence.

If you fail to pay or appeal this assessment, a State Tax Execution may be issued pursuant to O.C.G.A. § 48-3-1.  Further, as provided by O.C.G.A. § 48-16-10, a 20% cost of collection fee will be added and, collection of the liability may then be enforced through the legal processes of attachment, garnishment or levy as authorized by O.C.G.A. § 48-2-55.

To appeal pursuant to the Administrative Procedure Act, send a written request for hearing to:

Commissioner of Revenue
PO Box 49708
Atlanta , Georgia , 30359

Further collection actions will be held in abeyance pending the decision of the hearing officer appointed.

To file an appeal in Superior Court you will need to post a surety bond that equals the amount in dispute. Refer to Title 48 of the Official Code of Georgia for complete details of this procedure and other filing requirements. If you have neither paid the assessment, appealed the Official Assessment and Demand for Payment notice, nor made payment arrangements within 30 days, the Department may issue a Collection Notice

As of January 2006, the Department is no longer issuing Collection Notices. Please click the link shown below to see the Information Bulletin regarding this change in collection procedures by the Department.

The Department has recently changed its procedures with respect to certain collection notices previously sent to taxpayers regarding outstanding tax liabilities. In the past, taxpayers would receive a notification of their outstanding liabilities after the Official Assessment and Demand for Payment was issued but before the issuance of a State Tax Execution (also known as a Fi. Fa.). This notice was commonly referred to as either a Collection Notice or a Field Notice, and provided information to the taxpayer regarding the issuance of a Fi. Fa. against the taxpayer for their failure to pay state tax(es), interest and penalty due to the State Revenue Commissioner.

Recent system improvements and increases in Department efficiencies have allowed the Department to provide information previously shown on a Collection or Field Notice on the Official Assessment and Demand for Payment. Thus, taxpayers will no longer receive a Collection or Field Notice regarding an outstanding liability.

This change in procedures will not affect any taxpayer's rights under the Georgia Taxpayer's Bill of Rights or other rights or remedies available to a taxpayer under Georgia Law.


Fi.fa Action Notice

This notice advises you that a State Tax Execution has been issued against you and is being recorded in the Office of the Clerk of Superior Court in your county. The State now has the authority to enforce collection of this debt by such legal actions as garnishment and levy of your bank accounts.



HOW DO I REACH THE OFFICE OF THE TAXPAYER ADVOCATE?

The most expedient way to contact The Office of the Taxpayer Advocate is via e-mail:taxadv@dor.ga.gov

Via facsimile:404-417-2101

Via mail:PO Box 49708, Atlanta, Georgia, 30359-0708

If your problem is urgent in nature, call 404-417-2100. Leave your name, telephone number, account number and a brief description of your problem.
 


FREQUENTLY ASKED QUESTIONS

1.Does the State offer an Installment Payment Plan?
Yes, the State offers an installment payment agreement for individual income tax filers. To apply for an installment payment agreement, submit a written request to the Installment Program Section, P.O. Box 740396, Atlanta, GA 30374-0396. You may also contact the Installment Program Section at 404-657-0295. Note: Interest at 1% per month will accrue on any unpaid tax balance. Late payment penalties may also apply based on the circumstances. Before requesting an installment payment agreement, you may want to consider a less costly means of payment.

2.Innocent/Injured Spouse Relief.
Generally a person must have been treated as an innocent or injured spouse under Internal Revenue Service (IRS) guidelines before innocent/injured spouse status can be considered for Georgia purposes. You will need to provide the supporting paperwork issued by the IRS.

3.What am I required to do if I receive a notice from the IRS that I have under-reported my income? (IRS CP2000 Notice)
When the IRS notifies you of unreported income or a change in your return, you must notify the Department of Revenue within 180 days via the amended individual income tax return (500X). This form is available on our web site at www.etax.dor.ga.gov under Individual Income Tax forms. Interest is calculated at the rate of 1% per month on any unpaid tax balance from the date the return was due until the tax is paid.

4.What is a Return Comparison Notice?
This notice precedes the Proposed Assessment notice discussed earlier in this section. It is an informational notice stating that, when the Department processed your income tax return, our calculations were different than those on your return. All line items are displayed to assist you in determining what line item was changed. If you disagree with this notice, contact the number or address at the top left-hand portion of the notice.