FiFa Tax Liens and other Tax Problems in Georgia

The following information is unique to the Georgia Department of Revenue

• Bank Levy
• Collection Agencies
• Collection Process
• FiFa Lien
• Installment Payments
• Offer in Compromise
• Professional Representation
• Rights and Appeals
• Wage Garnishment

Bank Levy

The state can take money out of your bank accounts, up to the amount of money owed to them. This is called a bank levy. Banks are required by law to comply with a bank levy if the money is there. There is, however, a holding period during which you may get money back. The state may also offset your tax debt by applying refunds due to you, and also a refund due to you from the IRS. If you have had a bank levy, or anticipate that one is likely, seek professional advice.

Collection Agencies

The state of Georgia may outsource the collection of delinquent taxes to a debt collection company. If you are contacted by a collection company, claiming that you owe taxes, verify their identity prior to divulging any personal information such as social security numbers, bank accounts, or tax ID numbers.

When an account reaches this stage of the collection process, up to a 20% collection fee may be added to the liability.

The following agencies are used by the state of Georgia:

• AMO Recoveries, Inc.
  5655 Peachtree Parkway, Suite 213
  Norcross, GA 30349
• Financial Asset Management Systems, Inc.
  1967 Lakeside Parkway, Suite 402
  Tucker, GA 30084
• West Asset Management
  10300 Spotsylvania Avenue, Suite 200
  Fredericksburg, VA 22408

Collection Process

A Proposed Assessment is the first notification from the state of Georgia about its intent to assess interest and/or penalty to a delinquent payment or return. Failure to pay or protest this notice within 30-days of issuance will result in the issuance of an Official Assessment and Demand for Payment.

The Official Assessment and Demand for Payment is a notification that the Department has assessed interest and/or penalty to a delinquent payment or return. Failure to pay or protest this notice within 30 days will result in enforced collection and the imposition of a collection fee.

Collection Notice informs that a taxpayer's account has been assigned to the Compliance Division, and if payment is not received immediately a collection fee will be imposed and a State Tax Execution (FiFa) will be executed.

FiFa Lien - FiFa Tax Lien

When a tax liability has gone unpaid and reaches the lien stage or FiFa stage, it will be assigned to a collections revenue officer at the state, or to a private debt collection agency. The FiFa Notice is legal notice that the state is filing a tax lien and a State Tax Execution has been issued. A tax lien will be reflected on your credit report and negatively impact your credit rating, encumber assets, and will remain until the liability is paid off.

This is the first stage of aggressive collections, and allows the government to have legal right to levy or seize assets at a later time. Additionally, your account may be placed with a private collection agency for further action.

Installment Payments

In situations when the entire amount cannot be paid in full, the state will consider an installment agreement to pay off the tax liability, including penalties and interest. Depending upon the amount owed and whether it is an individual, business, or both, the required forms and financial statements required vary. The first payment must be by automatic debit from your bank account. This allows the state to more easily access (levy) your bank account at a later time if you fail to make payments.

Offer in Compromise

If you cannot afford to pay back your entire liability, you may qualify for an Offer in Compromise. The Georgia Offer in Compromise (OIC) program closely resembles the IRS's OIC program:

1. There must be either a "Doubt as to Collectability" or "Doubt as to Liability".
2. You may not be in bankruptcy.
3. Penalties and interest continue to accrue until an offer is accepted.
4. Any money collected while the offer is being considered, will not reduce the payoff of the offered amount.

The Offer in Compromise is a program for those who cannot afford to pay what the government claims is owed, but it is also a very difficult package to properly prepare. The state will reject any Offer in Compromise where it is determined that the taxpayer's offer does not maximize the collection of the debt for the state.

Professional Representation

You may have a qualified professional represent you before the state of Georgia. This requires that you have a Power of Attorney form completed and signed before any tax matter can be discussed with your representative. The state of Georgia accepts the Department of Revenue Power of Attorney form for this purpose.

Rights and Appeals

You have rights within the collection process, but failing to respond to an assessment notice by the deadline may void those rights. You can appeal an assessment within 30 days if you disagree with it. The appeal must be made in writing and detail why you disagree with the state's findings. You may also request an informal hearing to present your case to the state.

Wage Garnishments

Your employer is legally obligated to comply with a garnishment request. A wage garnishment can remain effective until your back-tax liability is paid. If your wages are being garnished, or you have been warned that a garnishment is possible, seek professional advice.

We strive to save our clients money, time and stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.