Businesses in Georgia, like anyplace else, must fulfill their filing and payment obligations related to taxes pursuant to Georgia state law. The Georgia Department of Revenue (GDOR) examines tax returns to review whether the amounts for various items, such as credits and deductions, reported therein are true and accurate. When the GDOR requests more information as evidence to clarify or substantiate reported items on a return, it may conduct an audit.
The GDOR’s audits are typically related to the taxation of business enterprises for the following:
- Sales and Use Tax
- Corporate Income Tax/Net Worth Tax
- Non-Resident Withholding Tax
- Withholding Tax
- International Fuel Tax Agreement Tax (“IFTA”)
- International Registration Plan (“IRP”)
- Motor Fuel Tax
The Georgia Department of Revenue provides written notice of an audit through a letter stating that the GDOR has selected the taxpayer’s returns for examination. A GDOR auditor will schedule an appointment to meet with a taxpayer to discuss the nature of the business or employment, its accounting or record-keeping system, and any other matter related to the individual’s tax obligation.
At this time, it is essential to have all documented information organized and arranged so that the auditor may resolve any issues as quickly as possible without any need for further review. In this situation, an experienced tax professional may provide all the assistance necessary to effectively address and resolve any tax issues with the GDOR. Taxpayers are permitted to have an attorney, accountant or other person represent them in any meeting with the Georgia Department of Revenue. However, taxpayers are required to appoint this representative using a power of attorney.
GDOR auditors examine a taxpayer’s tax returns, ledgers, and other records to determine the accuracy and correctness of the amounts reported on the returns. Audits are usually conducted at the taxpayer’s place of business or, in the alternative, the office of the taxpayer’s attorney or accountant. If necessary, the audit may take place at a GDOR office.
If you are an individual or business taxpayer being audited by the State of Georgia, call The Gartzman Law Firm at (770) 939-7710.