Trust-fund tax resolution
Behind on Georgia Sales Tax or Payroll Withholding? It Can Be Fixed.
Sales tax and withheld payroll tax are trust-fund taxes. You collected them for the state, so the Department of Revenue treats unpaid balances more seriously than other debts, and it can hold owners and managers personally responsible. As a former Georgia State Revenue Agent, I know how these cases move and how to resolve them.
Deadlines that matter
- 45 days to protest a Notice of Proposed Assessment against the business
- 30 days to protest a proposed personal (responsible-party) assessment
- 20 days to claim exempt funds after a levy
- 10 days’ notice before a sales tax certificate revocation hearing
Count from the date on your letter. When in doubt, call first.
What’s at Stake When Trust-Fund Taxes Go Unpaid
Personal Liability
Officers, members, managers, and anyone who controls the money or signs the checks can be assessed personally for unpaid sales and withholding tax. The liability survives even if the business closes.
Losing Your Sales Tax Certificate
The Department can revoke your certificate of registration for unfiled returns or unpaid tax. Operating without one is unlawful. A hearing comes first, and a representative can attend with you.
Liens and Levies
An unpaid final assessment can become a state tax execution (a lien) and lead to a levy on bank accounts or property.
Buying or Selling a Business
A buyer can inherit the seller’s unpaid sales and withholding tax, up to the purchase price, no matter what the contract says. A tax clearance letter protects both sides.
How I resolve it
The Right Path Depends on Where Your Case Stands
| Your Situation | What I Do |
|---|---|
| The state hasn’t contacted you yet | Apply for Georgia’s voluntary disclosure program through a representative, without giving your name up front. Penalties are generally waived (interest still applies). The look-back is usually 36 months, but for tax you collected and didn’t send in, the state goes back as far as needed. |
| Returns are missing | Rebuild the records and file every missing ST-3 and G-7 return, so the state stops estimating what you owe. |
| You’re being audited | Organize the records before the first meeting, answer document requests, and review any proposed assessment before you accept it. |
| You disagree with the amount | File a protest before the deadline on the notice, with the records to support it. |
| You were assessed personally | Review whether you meet the state’s test for a responsible party and help you protest before the deadline. |
| You owe and can’t pay it all at once | Set up a payment plan (up to 60 months), and request penalty waivers where there’s reasonable cause. Offers in compromise exist, but the state may reject them for unpaid trust-fund taxes. |
| Your certificate is at risk | Prepare you for the revocation hearing and attend with a signed power of attorney, with a compliance plan the hearing officer can accept. |
| You’re buying or selling a business | Check for unpaid sales and withholding tax and request a tax clearance letter before closing. |
After a final assessment, appeals go to the Georgia Tax Tribunal, where a business must be represented by an attorney. I work alongside your attorney or can refer you to one.
Georgia Department of Revenue letters
Got One of These Letters? Here’s What It Means.
Find the title at the top of your letter. Each one has its own deadline and its own next step. Read the official Department of Revenue page for each letter.
Notice to Submit Return
The state hasn’t received one or more of your returns. Ignore it and the state may estimate what you owe.
Get Help with This LetterNotice of Proposed Assessment
The state says you owe tax. You have 45 days from the date on the notice to protest. Don’t let it pass.
Time-sensitiveOfficial Assessment and Demand for Payment
The balance is now final. Your options shift to payment plans and penalty relief.
Get Help with This LetterNotice of State Tax Execution
A state tax lien has been filed against the business or its property. It affects credit and financing.
Get Help with This LetterLevy of Money or Other Property
The state has taken funds or property to pay the debt. Act quickly to protect operating cash.
UrgentAudit Letter
The state wants to review your records. Preparation before the first meeting shapes the outcome.
Get Help with This LetterNot sure which letter you have? Book a Notice Review and I’ll read it with you.
What Happens When You Reach Out
1. Notice Review
A 30-minute call. You’ll know what the letter means and how urgent it is.
2. Case Review
You sign a Georgia power of attorney. I review your state account and filings, then give you a written plan and a quote.
3. Resolution
Returns filed, protests made, payment plan or disclosure in place. Started with a deposit, billed at milestones.
4. Stay Compliant
Monthly filing and bookkeeping so it doesn’t happen again.
Review fees are credited toward the work if you hire me. Read the Georgia DOR guidance on each topic.
The Sooner You Call, the More Options You Have.
I call back within one business day. Urgent deadlines first.