Can You Negotiate Your Georgia State Back Taxes?
Negotiating back taxes is not generally something most taxpayers think is even possible. But, over the last decade or so, the Internal Revenue Service (IRS) and state tax agencies have been working to improve overall accessibility and the perception that they are willing to work with taxpayers. The Georgia Department of Revenue (GDOR) has instituted several programs to help Georgia taxpayers with a fresh start. It does require some negotiation and communication with the IRS. You can negotiate directly with the IRS to reduce the amount of tax that you owe or to request that you pay it back over time rather than in a large lump sum.
Here are some tips on how to negotiate in a way that may yield positive results for you!
- Offer in Compromise: If you are unable to afford the tax debt you have incurred with the state of Georgia, you may qualify for an Offer in Compromise (OIC). This agreement allows you to pay less than the amount you owe. You should be aware that before you apply, you must have already filed your past tax returns. You may qualify for a Georgia OIC if you meet one of the following criteria:
- You are unable to pay the entire amount of taxes you owe, even by selling assets or through an installment agreement.
- There is a legitimate doubt that you actually owe part or all of your assessed tax debt.
- There is a special circumstance that makes full payment of the taxes owed an economic hardship.
2. Installment Agreement: An installment agreement allows you to pay your tax debt off over time, rather than all at once. Spreading the payment of your debt over time can offer the flexibility that you might need to finally pay off your tax debt. You should complete Form GA-9465 to apply. In order to be eligible, you cannot have filed bankruptcy, have any unfiled or late tax returns, or have a pending offer in compromise with the Georgia Department of Revenue. Finally, if your state tax liability has been assigned to a private collection agency, you will not be eligible for an installment agreement.
How To Negotiate With The GDOR
The best way to negotiate with the GDOR is to be clear about your request, complete all of the necessary paperwork that is required, including providing any financial documents. Being open and upfront is always the most effective way to communicate about back taxes. You should also be prepared to pay what you agree to pay or the GDOR will be more aggressive about obtaining payment.
If you would like assistance negotiating your back state taxes, you can partner with Success Tax Relief. Our tax relief firm has extensive experience communicating directly with the state (or the IRS) on taxpayer’s behalf. We are familiar with the application processes for both an Offer in Compromise as well as an