The Georgia Offer in Compromise (OIC) program has many similarities to the IRS OIC program. If you have accumulated Georgia state tax debt and don’t have the ability to pay in full, you should determine your eligibility for a Georgia OIC.
Georgia OIC Eligibility
Georgia OICs can be submitted because of doubt as to collectibility, doubt as to liability, or economic hardship. Taxpayers who don’t dispute their tax debt may qualify because of doubt as to collectibility or economic hardship.
You must pay at least as much as your minimum offer amount in order for your OIC to be accepted. However, you can submit less than the minimum offer amount if doing so would create an economic hardship.
The Georgia Department of Revenue will look at the following factors to determine how much your offer should be:
- Your ability to pay
- Your available equity
- Present and future income
- Present and future expenses
- Potential for changed circumstances (i.e. you are unemployed but could become employed again)
- Whether the offer is in the best interest of the state
You also need to meet other requirements to qualify for the Georgia OIC program:
- You must be current on all of your tax filing obligations. Get your delinquent returns filed before you submit your OIC.
- You can’t be in bankruptcy.
- You must submit all of the required documents along with your application.
Getting Help With Georgia OICs
The OIC program involves forgiveness of some of your tax debt. However, it’s important to realize that not everyone qualifies for this program, and those who do qualify need to submit a complete application and follow all of the terms of their offer.
Don’t waste time submitting a Georgia OIC application that is unlikely to be accepted. If you need help, contact a tax attorney to determine whether a Georgia OIC is your best option. Other tax resolution options may be more appropriate in some cases.
You also need to remember to stay in tax compliance even after your Georgia OIC is accepted. There is a five-year period where your offer can be rescinded and your tax debt can be reinstated if you fail to file tax returns or pay taxes.
Talk to a tax attorney to determine if you are eligible for a Georgia OIC and to get help submitting your Georgia tax settlement offer.
The Gartzman Law Firm can help you with back taxes and other Georgia state tax problems. Use our contact form to request a consultation with an Atlanta tax resolution attorney.