So, you just received an official letter from the Georgia Department of Revenue saying you owe more in taxes than you can afford right now. Your heart sinks, your mind begins to spiral, and you think, “How on earth will I pay this?”
Take a deep breath. You’re not the first person in Georgia to be in this boat, and you definitely won’t be the last. The good news is you’ve got tax payment options. The Georgia Department of Revenue offers several ways to make tax debt more manageable. Some tax payment options let you pay over time, others may reduce your total bill, and others pause collections while you get your finances sorted out.
In this post, we’ll discuss what tax relief options are available when you owe more than you can pay in Georgia. For further support navigating tax payment options, connect with RWB Tax Services at (770) 456-9980 today.
An installment agreement involves setting up a payment plan with the state of Georgia. Instead of paying your bill in one lump sum, this tax payment option allows you to make smaller monthly payments until it’s paid off. Georgia’s Department of Revenue (DOR) offers tax relief by allowing taxpayers who are unable to pay in full to request an Installment Payment Agreement.
This is a fairly straightforward process for tax relief. You apply online through the Georgia Tax Center and will propose a monthly amount that you can afford. The DOR then reviews your request and decides if it’s reasonable based on your income and expenses. Upon approval, you’ll be expected to make agreed-upon payments on time each month until the balance is paid in full.
Keep in mind that interest and penalties will still accrue while you’re on this tax relief plan; however, this benefit helps you avoid aggressive collection actions, such as wage garnishments or bank levies. An Installment Payment Agreement allows you the ability to remain current while paying down past tax debts.
It’s important to note that Georgia can cancel any tax relief agreement if you fall behind again, so make sure not to miss deadlines, skip payments, or ignore any new tax bills that may arise.
An Offer in Compromise is an agreement with the state of Georgia that allows you to pay less than you owe. Georgia’s Offer in Compromise is a tax relief program that allows taxpayers to settle their tax debt for a reduced amount if they’re truly unable to pay the full balance.
Although not easily approved, this tax payment option can be life-changing for those who do qualify. The state considers your financial situation (income, assets, debts, and living expenses) to determine whether collecting the full amount is realistic. If they conclude it’s not a feasible option, they may consider accepting a lump-sum payment for a smaller amount and forgiving the remaining debt.
There are three main reasons Georgia might approve an OIC as a tax relief option:
The process of applying for an OIC is quite in-depth. You’ll need to submit supporting documents, such as pay stubs, bank statements, and a detailed breakdown of monthly expenses. If your Offer in Compromise is accepted, you can walk away with a clean slate once you’ve paid the agreed-upon amount. Although this process can be grueling, the results are often worth it.
When tax deadlines are missed, the penalties can pile up fast. Sometimes, they add up to more than the actual tax bill itself.
You might be able to waive some or all of these incurred penalties through a penalty abatement. Georgia allows taxpayers to request a reduction or removal of penalties if there’s a legitimate reason for falling behind. You must be able to prove that you had “reasonable cause.” This could include things such as:
Georgia doesn’t automatically offer tax relief via penalty waivers, so you’ll need to write a letter or file a formal request explaining your situation. Be honest, be specific, and include proof when you can.
If it is deemed that the situation was out of your control, the Georgia Department of Revenue can remove these penalties and even reduce some of the interest tied to them. Although this tax relief option doesn’t magically erase your debt, penalty abatement can make your balance much more manageable.
If you’re truly struggling to make ends meet, Georgia may temporarily pause collection efforts through a hardship deferral program, also known as currently not collectible status. It’s meant for people who genuinely can’t pay anything without risking their basic needs like food, rent, or utilities.
In order to be considered, you’ll need to show irrefutable proof of your financial hardship. This includes providing records of income, monthly expenses, and supporting documents to help strengthen your case. If approved, Georgia’s Department of Revenue will temporarily halt debt collection efforts.
This by no means erases the debt. Interest still accrues in the background, but you won’t face levies, garnishments, or aggressive letters while your hardship status is active. This tax relief deferral is designed to allow people time to financially stabilize before Georgia resumes collections. It’s like a temporary pause button when life hits you hardest.
Sometimes, you may find yourself facing tax debt to the IRS, in addition to state taxes. You’ll be glad to know that the IRS has similar relief options designed to work alongside Georgia’s.
You can apply for an IRS payment plan that allows you to pay your federal taxes over time. The IRS offers a federal Offer in Compromise program that’s almost identical to Georgia’s. If you qualify at the federal level, it’s also worth checking your eligibility at the state level.
There’s also a tax relief option called Currently Not Collectible (CNC) status with the IRS. If you’re able to prove that paying your tax debt would make it impossible to afford necessities like food or housing, the IRS may temporarily halt collections.
Additionally, if your current or former spouse was the cause of this tax problem, Innocent Spouse Relief can protect you from being held responsible for their portion of the debt under certain conditions.
If you cannot pay your Georgia taxes, things won’t unravel overnight, but they do get worse the longer you wait. The Georgia DOR adds interest and penalties almost immediately after the due date. Over time, that amount can quickly snowball out of control.
If you continue to ignore the debt, the Georgia Department of Revenue will eventually move to aggressive collections. At this stage, the following actions may be taken:
Multiple warnings often precede these extreme measures. Ignoring or avoiding tax-related letters puts you on a fast track to losing control over your finances and assets.
Once a lien or levy has been established, it’s much harder to correct course, so this is where it pays to be proactive. Most people don’t realize that simply ignoring their tax debt won’t make it disappear. In fact, it grows exponentially. Interest, late fees, and penalties continue racking up until it feels impossible. Even if you can only afford a small monthly payment, it’s better to take action now than to wait until your balance doubles.
If you’re reading this and thinking, “Okay, but where do I actually start?”. Here’s a simplified version of what actions to take next. First, make sure you’ve filed all required tax returns. The Georgia DOR won’t consider any tax payment options if your filings aren’t up to date. Even if you’re unable to pay, file anyway; doing so will keep you compliant.
Next, get organized. Write down your income, expenses, assets, and debts. This helps you figure out how much you can realistically afford to pay monthly and makes filling out applications easier. Visit the Georgia Department of Revenue website and apply for a payment plan. It’s the easiest tax relief option to start with and helps buy you some time. If the minimum payment is still too much for your budget, consider an Offer in Compromise or a hardship deferral. If you’ve been hit with multiple penalties, you can also request penalty abatement for additional tax relief.
Remain consistent in communicating with the Georgia Department of Revenue. Promptly respond to letters and emails, even if you’re not able to pay. Showing effort and a willingness to rectify your tax debt can be beneficial to your case. Whatever you do, remain current on this year’s taxes, because we’re trying to solve problems, not add to them.
When To Seek Professional Help for Tax Relief in Georgia
For many, the tax system can feel like a maze. Tax attorneys, enrolled agents, and certified public accountants (CPAs) know how to navigate Georgia’s relief programs and work to negotiate on your behalf. They handle the paperwork, communicate with DOR agents, and make sure your applications are solid.
Although hiring a tax professional sounds like an added expense, consider it an investment in your financial future. Hiring a tax expert could save you thousands in penalties or help negotiate a much smaller payment. There are also low-cost or free resources, such as Georgia Legal Aid or Low-Income Taxpayer Clinics (LITCs), that can guide you through the process.
If you have a large amount of tax-related debt, a complex situation, or are already facing collection actions, it’s time to call in your local tax experts at RWB Tax Service in Villa Rica, Georgia, at 770-456-9980. Let our experts guide you through this stressful time, so you don’t have to do it alone.
Owing more than you can pay in taxes can feel terrifying, but Georgia offers several ways to get back on track. From flexible payment plans to Offers in Compromise to help cut your total balance, there are several options. In extreme cases, you may be able to request penalty relief or a temporary hardship pause.
Tax problems won’t fix themselves, but they are fixable. The most important thing you can do now is take action. Call our tax professionals at RWB Tax Service today at 770-456-9980 to discuss your next steps after receiving a letter from Georgia DOR or the IRS. We’ll help you explore your tax relief options so you can move forward with confidence.
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