Georgia Sales Tax Payment Plan & Resolution
Checklist
Sales tax debt in Georgia occurs when a business collects sales tax from customers but does not remit the full amount owed to the State of Georgia. Understanding the Georgia sales tax payment plan process is essential if the Georgia Department of Revenue has notified you about unpaid sales tax.
Penalties and interest can cause debt to grow quickly when combined with the original tax amount, making it harder to resolve over time. Addressing the issue early gives you more options and typically results in better outcomes than waiting for escalated collection activity.
What This Issue Means
Sales tax debt happens when a business collects sales tax from customers but does not remit the full amount to the state. Several issues can cause this situation: underreporting, non-filing of sales tax returns, non-payment of filed returns, or a combination of these problems.
The state views the unpaid amount as a tax liability owed by the business, not the customer.
Once the Georgia Department of Revenue identifies unpaid sales tax, the account enters the collection system, and the state may issue notices, place liens, or take other enforcement actions.
Why the State Issues This Notice
Georgia requires all businesses with a sales tax permit to file returns and remit collected sales tax on established schedules. Common administrative triggers include missed return filings, filed returns with no payment, partial payments, or accounts flagged during audits.
What Happens If This Is Ignored
Unpaid sales tax that remains unaddressed typically leads to escalated collection efforts by the
Georgia Department of Revenue. The state may issue additional notices, file a tax lien against the business or property owner, levy bank accounts or business assets, or suspend the business license.
Debt grows larger the longer it remains unpaid due to accumulating penalties and interest.
Responding to initial notices and establishing contact with the state can help prevent more severe enforcement action.
What This Does NOT Mean
Receiving a sales tax notice does not mean the business license has been suspended or that a tax lien has already been filed. A notice is typically the state’s initial communication about the debt, not a final enforcement action.
Steps for Georgia Sales Tax Payment Plan Resolution
Step 1: Gather every notice, letter, or document from the Georgia Department of Revenue
regarding sales tax debt. If notices have been misplaced, contact Business Collections at (404)
417-2122 or Business Tax at (877) 423-6711 to request copies and account information.
Step 2: Log in to your Georgia business tax account online through the Georgia Department of
Revenue website if you have an existing account. Review the account status, outstanding balance, and detailed transaction history for each tax period.
Step 3: Identify whether the debt resulted from missed filings, filed returns without payment, or
partial payments. Gather copies of filed returns, payment records, and correspondence with the state for the periods in question.
Step 4: Call Business Collections at (404) 417-2122 to speak with a collections representative.
Have your sales tax account number, business name, and the specific tax periods ready before calling. Explain the situation clearly and ask for a breakdown of the current balance, including the original tax amount, penalties, and interest.
Step 5: Ask the collections representative whether your account qualifies for a Georgia
Department of Revenue installment agreement. Provide information about your current financial situation and business cash flow if asked.
The Georgia DOR typically approves or denies installment agreement requests within 30 days.
Delinquent taxpayers who communicate proactively with the state often receive more favorable resolution options.
Step 6: The Georgia Department of Revenue accepts payments by electronic funds withdrawal,
credit card, debit card, check, or money order. Make the first payment according to the agreed-upon plan or deadline.
Step 7: If the debt includes unfiled periods, file those returns as soon as possible with payment
or according to the payment plan. Ensure all future returns are filed on time and that current sales tax is paid by the due date.
Step 8: If the agreed payment amount becomes unaffordable due to changed business
circumstances, contact the collections division before a scheduled payment is missed. The state may modify the plan terms if the request is made proactively.
Step 9: Watch for any follow-up notices, payment plan agreements, or correspondence from the
state. If expected documentation is not received within 30 days of requesting a payment plan, follow up with the DOR.
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 10: Keep detailed records of all phone calls with the DOR, including the date, time,
representative name, and topics discussed. Retain copies of all payment plan agreements, notices, payment confirmations, and bank statements.
What Happens After Completion
After a payment plan is established and the first payment is made, the Georgia Department of
Revenue typically stops issuing collection notices. It removes any active enforcement actions if the account remains in compliance. Payment processing occurs as each installment is received and the account balance updates accordingly.
When the debt is fully paid and the account is satisfied, any tax lien is typically released.
Release of a Georgia sales tax lien occurs within five days after the full payment posts to the taxpayer’s account. Property owners with recorded liens should verify release documentation after final payment.
Common Mistakes to Avoid
Ignoring initial notices reduces resolution options and leads to enforcement escalation. Georgia law establishes a 3-year statute of limitations for assessing sales tax from the date the return is filed, but after the Department records a state tax execution, they have 10 years from the recording date to collect the tax liability.
Missing payment plan deadlines can result in plan cancellation and escalated enforcement action. Failing to file current returns while resolving past debt demonstrates poor compliance and creates additional delinquent taxes.
Penalty relief requests can be submitted online through the Georgia Tax Center under Tasks or by mail using Form TSD-3. The Department may waive a penalty in whole or in part if it determines that reasonable cause exists under Georgia Code § 48-2-43. Property owners and business operators should address unpaid tax obligations promptly to avoid liens that may affect creditworthiness and business operations.
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.
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