It’s important to understand that it’s not just the Internal Revenue Service that has various tools at its disposal to collect taxes owed. Indeed, the Georgia Department of Revenue also has its own set of tools that it is willing and able to deploy whenever it deems necessary.
Similarly, it’s also important to understand that while the IRS is often willing to work with taxpayers when they are unable to pay the tax debt owed, so too is the Revenue Department. Indeed, both agencies rely on similar tools in this regard, including offers in compromise.
What is an offer in comprise?
As far as the state of Georgia is concerned, an offer in compromise — or OIC — is an agreement between the taxpayer and the Revenue Department to settle a tax debt for less than the amount owed.
Under what circumstances will the Revenue Department agree to an OIC?
The Revenue Department is willing to agree to an OIC in those situations where neither a protracted installment agreement nor a declaration of the case as currently not collectible is a desirable option. In other words, in those situations where collection in full is not an option, but the taxpayer has made an offer to settle that reasonably reflects their ability to pay.
What are the basic requirements for seeking an OIC?
Any Georgia resident seeking to have their OIC processed by the Revenue Department must satisfy the following minimal criteria:
- They must have filed any and all tax returns/reports
- They must have received a final notice of assessment concerning all state taxes owed
- They must not be involved in any open or active bankruptcy case
We’ll continue discussing this subject in future posts. In the meantime, please consider consulting with a skilled legal professional if you are having problems with a state tax debt and would like to learn more about your options.