Georgia Active Collections Timeline Checklist

Georgia Active Collections Timeline Checklist

Understanding State Tax Enforcement Actions

The Georgia Department of Revenue initiates enforcement when you have unpaid tax debt or unresolved compliance issues that remain unaddressed after regular notices. Enforcement represents formal legal steps taken to collect money owed or compel compliance with state tax law.

State law authorizes enforcement action when taxpayers fail to respond to previous notices or leave taxes unpaid. Common triggers include unpaid income tax, unpaid sales tax, unpaid business taxes, failure to file required returns, or failure to remit withheld employee taxes.

Before advancing to enforcement, the Department typically allows time for payment or response. These actions serve as collection tools to recover outstanding tax debt and ensure taxpayers comply with legal obligations.

Consequences of Ignoring Enforcement

Failing to respond to enforcement actions typically causes the Department to escalate collection efforts. The state may place a lien on your property, garnish your wages, seize bank account funds, revoke business licenses, or suspend alcohol licenses for businesses.

Additional penalties and interest continue accumulating on unpaid debt, making extended delays increasingly difficult and costly. Criminal tax violations may be referred for prosecution in cases involving deliberate fraud, though this remains uncommon in routine collection matters.

Extended delays without resolution typically transform manageable situations into severe financial complications. Responding promptly to enforcement notices protects your financial interests and preserves resolution options.

What Enforcement Does Not Mean

Receiving an enforcement notice does not automatically mean the Department has filed a lawsuit or that criminal charges are pending. Enforcement action does not mean your debt has been sold to a collection agency.

Steps to Address Enforcement Actions

1. Read the entire notice from the Georgia Department of Revenue carefully, including all dates, amounts, and contact information. Identify the specific enforcement action being taken, such as a state tax execution lien, wage garnishment, license suspension, bank levy, or other action.

2. Determine which tax is involved, whether income tax, sales tax, withholding tax, or another state tax. Find the tax year or period covered by the enforcement action, as this information typically appears on the notice.

3. Collect all notices, bills, or correspondence you received about this tax debt. Locate copies of the tax return in question if you filed one, and find payment records, cancelled checks, or bank statements showing payments made toward this debt.

4. Contact the Georgia Department of Revenue at the phone number listed on your enforcement notice or on the Georgia Tax Center website. Explain that you received an enforcement action and want to discuss options.

5. Request confirmation of the exact amount owed, including principal, penalties, and interest. Ask for an itemized breakdown showing how penalties and interest were calculated.

6. Ask about installment payment plans and available terms. Installment agreements require a minimum monthly payment of $25 and may not exceed 60 months.

Georgia State Tax Execution Liens

A state tax execution, also known as a tax lien, is a legal claim to secure debt and may hamper the transfer of real or personal property. After the Department records a state tax execution, it has 10 years from the recording date to collect the tax liability.

This 10-year period may be extended for specific reasons, including bankruptcy, entering into an installment payment agreement, submitting an Offer in Compromise, or filing protests and appeals.

State tax liens may not be renewed after the initial 10-year period expires. Recording a state tax execution makes your tax debt a public record and allows the Department to initiate collection

enforcement actions. Liens attach to any property owned by the individual or entity named on the execution.

Full payment is required for the Department to release a lien. Within five days after full payment posts to your account, the Department releases the lien.

Wage Garnishment Limits

Wage garnishment is an order the Department sends to your employer requiring the employer to withhold a portion of your paycheck and send it to the state to pay your tax debt. Under Georgia law, wage garnishment for tax debt is limited to the lesser of 25 percent of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.

If disposable income is less than 30 times the minimum wage, wages cannot be garnished. The garnishment continues until the debt is paid in full or a different arrangement is made through a payment plan or other resolution.

Payment Plan Requirements

Installment agreements allow taxpayers to pay tax debt over time through structured monthly payments. Payment plans may not exceed 60 months, and the minimum monthly payment is

$25.

Some installment agreements may require a down payment depending on the total tax liability and your financial situation. Request information about the Offer in Compromise program if you cannot pay the full amount. Once established, payment plan terms generally cannot be changed, though the Department may cancel an existing agreement and create a new one with different terms.

License Suspension Authority

The Department has documented authority to suspend or revoke alcohol licenses and certain professional or business licenses for tax delinquency. This authority is outlined in official policy bulletins addressing license suspension or revocation for outstanding tax liabilities.

Common Errors to Avoid

Ignoring enforcement letters, hoping problems will disappear, typically results in escalation and additional collection actions. Missing response deadlines can result in wage garnishment, bank levies, or other collection actions taking effect.

Providing incomplete information when the Department requests documentation or financial details delays resolution and may be viewed as non-cooperation. Making payments without a formal agreement may result in improper crediting and continued enforcement actions.

Always establish a payment plan through Form GA-9465 before making payments.

Documenting all communications with the Department protects your interests and creates a clear record of your resolution efforts.

Facing State Enforcement or Payroll Tax Issues?

If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.