Georgia Bank Levy Checklist

Georgia Bank Levy Checklist

What State Tax Enforcement Means

State tax enforcement occurs when the Georgia Department of Revenue takes formal action to collect unpaid taxes, penalties, or interest after standard collection notices fail to resolve the debt. Enforcement actions include wage garnishment, bank levies, property liens, and asset seizures that represent a critical escalation requiring immediate attention to protect your financial accounts and income.

Why the Georgia Department of Revenue Issues

Enforcement Actions

The Georgia Department of Revenue uses enforcement when standard collection methods have not worked after the department sends notices and payment deadlines pass without response or payment. Georgia’s tax laws authorize specific collection procedures that typically begin with a Notice of Proposed Assessment, followed by an Official Assessment and Demand for

Payment if you do not dispute the proposed assessment.

For most taxes, the enforcement agency files a Notice of State Tax Execution before pursuing levy actions, while sales tax and withholding taxes may trigger a notice of delinquency that freezes assets held by a third party for thirty days without filing a state tax execution first. The department follows established statutory procedures under OCGA Section 48-2-55 and related tax law provisions that outline assessment periods, notice requirements, and collection authority.

Consequences of Ignoring Enforcement Actions

Continuing to ignore enforcement actions typically results in escalation of collection efforts as the state may expand enforcement to include additional income sources or pursue additional collection tools such as property liens or seizures. State tax executions remain enforceable for ten years from the recording date, and the total collection period can exceed fifteen years when combined with the initial five-year filing period under OCGA Section 48-3-42.

What Enforcement Does Not Mean

Enforcement does not automatically mean criminal prosecution or jail time, nor does a bank levy or wage garnishment mean your entire account will be frozen or all your wages will be taken.

You still have options for addressing the debt, and the enforcement process can be stopped through payment or an approved arrangement with the state.

Steps to Take After Receiving an Enforcement Notice

1. Gather all related documents immediately by collecting the enforcement notice itself, any previous collection notices, your tax returns for the years in question, records of any payments made, and documentation of your current financial situation.

2. Verify the debt amount and tax years by reviewing the enforcement notice carefully to confirm the tax years involved, the total amount owed, and any penalties or interest listed, then compare this information to your own tax records.

3. Determine if the debt is actually yours by confirming that the name, social security number or tax identification number, and tax years on the notice match your records.

4. Contact the Georgia Department of Revenue directly by calling the Compliance Division or the number listed on the enforcement notice to explain that you have received an enforcement action.

5. Ask about all available options during the call, including payment plans and other arrangements that might stop the enforcement action, then ask what documentation the enforcement agency needs to consider each option.

6. Request written information about your options rather than relying only on verbal explanations from department representatives.

7. Examine your ability to pay immediately or in installments by reviewing your current income, expenses, and assets to determine whether you can pay part or all of the debt.

8. Submit your request in writing if seeking any arrangement by following the department’s instructions and including all documentation the department requested.

9. Retain copies of everything you send to the department with detailed records of all correspondence, including dates sent, methods of delivery, and confirmation of receipt.

10. Follow up if you do not hear back within the stated timeframe that the department provides in its initial response.

What Happens After You Respond

Payment plans approved by the department require confirmation in writing regarding whether wage garnishment or bank levy enforcement will be suspended, as the department may continue other collection actions even with an active payment agreement. Plans require a minimum monthly payment of twenty-five dollars, cannot exceed sixty months, and include either a fifty-dollar administrative fee for auto-draft plans or a one-hundred-dollar fee for mailed check plans.

The department will not approve a payment plan if you are in bankruptcy, have a pending offer in compromise application, or have not filed required state tax returns for any of the preceding five years. Penalty and interest continue to accrue monthly on the remaining tax liability throughout the payment plan period.

Understanding Wage Garnishment for State Tax Debts

Wage garnishment for Georgia Department of Revenue tax debts operates differently than garnishments for private creditor debts under Georgia’s tax laws. Private creditors face limits capping garnishment at the lesser of twenty-five percent of disposable earnings or the amount by which disposable earnings exceed thirty times the federal minimum wage. Still, the Georgia

Department of Revenue and the IRS do not face these same limitations when collecting Georgia individual income tax debts under OCGA Section 48-2-55.

Tax-collecting agencies can garnish twenty-five to fifty percent or more of disposable earnings, depending on your specific circumstances, filing status, and number of dependents. Contact the

Georgia Department of Revenue to understand the specific amount that will be garnished in your case.

Understanding Sales Tax and Withholding Tax

Enforcement

Sales tax enforcement proceeds more quickly than enforcement for other tax types because these funds collected from customers represent amounts held in trust for the state. Business owners who fail to remit sales tax may face a notice of delinquency that directs a third party holding their property to freeze those assets immediately without requiring a state tax execution first.

Tax law grants the enforcement agency broad authority to pursue these collection actions when delinquent balances include sales tax or withholding tax amounts, and the thirty-day freeze period provides a limited time to resolve the matter before the department seizes the property.

Common Mistakes to Avoid

Ignoring the enforcement notice entirely typically results in continued or expanded enforcement and additional financial harm that becomes more difficult to resolve over time. Contact with the department should happen as soon as possible, and gathering documentation before calling makes conversations more productive and increases the likelihood of a favorable resolution.

Not requesting information in writing can lead to misunderstandings, as verbal conversations with the department can be unclear or subject to different interpretations. Assuming enforcement will stop automatically is incorrect, as enforcement actions typically continue until the state receives payment, approves an arrangement, or determines the debt is uncollectible through formal procedures.

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.