Georgia Sales Tax Enforcement Actions Checklist

Georgia Sales Tax Enforcement Actions Checklist

Georgia’s Department of Revenue takes enforcement actions when a business or individual does not pay owed sales tax, files late returns, or fails to register for a sales tax account. These actions are formal steps the state uses to collect unpaid taxes or ensure compliance with filing requirements.

What This Issue Means

A sales tax enforcement action is an official notice or collection activity from Georgia’s

Department of Revenue indicating that the state has identified an unpaid sales tax balance, a missing sales tax return, or non-compliance with sales tax filing or payment requirements.

Different forms of action may include a Notice of Proposed Assessment, an Official Assessment and Demand for Payment, a Notice of State Tax Execution, a levy on bank accounts or wages, or other collection measures.

Which stage of collection the state is pursuing and how long the debt has remained unpaid or unresolved determines the specific form. Understanding what enforcement action you have received helps you respond appropriately and avoid additional penalties or escalation.

Why the State Issued This or Requires This

Georgia issues enforcement actions because state law requires all persons engaged in retail or wholesale activity to collect and remit sales tax. When a business does not register for a sales tax account, fails to file returns on time, underpays sales tax, or does not pay the balance after the due date, the Department of Revenue is authorized to pursue collection.

What Happens If This Is Ignored

Ignoring a sales tax enforcement action causes the state to escalate collection efforts. The

Department of Revenue can add penalties and interest to the unpaid balance, issue additional notices, place a lien on business or personal property, levy bank accounts or wages, or pursue other collection measures authorized under state law.

What This Does NOT Mean

Receiving a notice or assessment does not mean the state has already seized property, garnished wages, or frozen accounts, though it may indicate that such actions are possible if the debt remains unpaid. An enforcement action does not mean your case is closed or that settlement options are unavailable.

Steps to Take After Receiving a Sales Tax Enforcement

Action

1. Review All Documents Carefully

○ Identify the specific type of notice or action you received from the Georgia

Department of Revenue.

○ Note the date of the notice, the tax period or periods it covers, and the amount owed.

○ Write down all deadlines mentioned in the notice.

○ Look for contact information for the Department of Revenue or the specific office handling the action.

2. Verify Information Against Your Records: Pull your sales tax records for the periods listed on the notice. Check whether the sales tax account number or business identification number matches your records.

Confirm that the tax periods listed are correct and that you filed returns for those periods if applicable. Review the amount owed and compare it to your own accounting records, if available.

3. Gather All Related Tax Documents and Correspondence: Collect copies of any sales tax returns you filed for the periods mentioned in the notice. Save any payment confirmations, canceled checks, or bank statements showing payments made.

Gather any previous correspondence from the state regarding this account. Keep copies of business records, sales records, or other documentation related to the periods in question.

4. Contact the Department of Revenue Before the Deadline: Call the contact number listed on the notice or visit the Georgia Tax Center online. Explain the situation briefly, whether you have a past-due balance, whether you did not file a return, or whether you believe the notice contains an error.

5. Request a Formal Review or Hearing If You Disagree: If you disagree with a Notice of

Proposed Assessment, you have 45 days from the date on the notice to file a protest with the Georgia Department of Revenue using Form TSD-1. For an Official

Assessment, you have 45 days from the issued date to file an appeal with the Georgia

Tax Tribunal or superior court.

Ask what documentation you need to submit to support your position. Comply with the

45-day protest deadline to preserve your appeal rights.

6. Prepare a Complete Written Response: Compose a clear letter addressing the specific issues you have identified. Explain factually why you believe the notice is incorrect, incomplete, or issued without proper basis.

7. Explore Payment or Settlement Options: Payment plans may not be longer than 60 months, and the minimum monthly payment is $25 when using Form GA-9465. Inquire whether penalties can be reduced or waived by submitting Form TSD-3 and demonstrating reasonable cause.

8. Follow Up in Writing After Taking Action: Send a follow-up letter to the Department of

Revenue confirming any communication, agreement, or payment made. Request written acknowledgment that the matter is being resolved or that your request for review has been received.

Important Deadlines and Collection Timeframes

Georgia has three years from the date a return is filed to assess additional sales tax under

O.C.G.A. § 48-2-49. After a state tax execution is recorded, the Georgia DOR has 10 years from the recording date to collect the tax liability. For a Notice of Proposed Assessment, you have 45 days to file a protest. For an Official Assessment, you have 45 days to file an appeal.

Penalty Waivers and Interest

Penalties may be waived if you demonstrate reasonable cause by showing the failure was not a result of purposeful disregard of tax requirements. Submit Form TSD-3 through the Georgia Tax

Center or by mail to request a penalty waiver.

The Department of Revenue evaluates each penalty waiver request on a case-by-case basis, considering documentation and compliance history. Interest waiver is governed by a separate authority and is subject to different standards than penalty waiver.

Common Mistakes to Avoid

Missing the 45-day protest deadline for a Notice of Proposed Assessment or the 45-day appeal deadline for an Official Assessment limits your ability to dispute the assessment. Sending payments without a formal payment plan agreement may not stop enforcement action.

Tax Liens and Credit Reporting

Georgia state tax liens are public records that may be discovered by creditors and lenders even though they do not directly appear on credit reports managed by major credit bureaus. The state has no control over how credit bureaus handle public lien information and cannot instruct credit reporting agencies to alter their records.

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.