Georgia State Income Tax Protest

GEORGIA STATE INCOME TAX PROTEST — NOTICE OF PROPOSED ASSESSMENT

TABLE OF CONTENTS

1. Submission Header
2. Identification of Assessment
3. Statement of Timeliness
4. Statement of Facts
5. Issues Presented
6. Legal Argument
7. Burden of Proof
8. Penalty and Interest Abatement
9. Hearing Request and Reservation of Rights
10. Relief Requested
11. Verification and Signature
12. Certificate of Service
13. Schedule of Exhibits
14. Georgia Practice Notes
15. Sources and References

1. SUBMISSION HEADER

TO: Georgia Department of Revenue
Compliance Division — Protest Resolution Unit
1800 Century Boulevard, NE
Atlanta, Georgia 30345-3205

FROM: [TAXPAYER LEGAL NAME]
[STREET ADDRESS]
[CITY, STATE ZIP]
SSN/FEIN: [XXX-XX-XXXX or XX-XXXXXXX]
GA Tax Account No.: [________________________________]

RE: Protest of Notice of Proposed Assessment No. [________________________________]
Tax Type: Georgia Individual / Corporate Income Tax
Tax Period(s): [YYYY]
Date of Notice: [__/__/____]
Amount in Dispute: $[________________________________] (tax, penalty, and interest)

FORM: Filed concurrently with Georgia Form TSD-1 (Protest of Proposed Assessment or Refund Denial).

2. IDENTIFICATION OF ASSESSMENT

2.1. Taxpayer [TAXPAYER LEGAL NAME] ("Taxpayer") timely filed Georgia Form [500 / 600 / 600S / OTHER] for tax year(s) [YYYY] on [__/__/____].

2.2. On [__/__/____], the Georgia Department of Revenue ("Department") issued Notice of Proposed Assessment No. [NUMBER] (the "Proposed Assessment") asserting additional Georgia income tax of $[____], penalty of $[____], and interest of $[____] through [__/__/____].

2.3. The Proposed Assessment is based on the Department's adjustments described as: [summarize Department's adjustments — e.g., disallowance of business expense deductions, addback of federal NOL, reclassification of income, residency determination, IRC § 482 transfer pricing adjustment, federal RAR conformity, etc.].

2.4. Taxpayer disputes the Proposed Assessment in its entirety / in part as set forth below and timely files this Protest pursuant to O.C.G.A. § 48-2-46.

3. STATEMENT OF TIMELINESS

3.1. The Proposed Assessment is dated [__/__/____]. Pursuant to O.C.G.A. § 48-2-46 and the time limit printed on the face of the Proposed Assessment, the deadline to file this Protest is [__/__/____].

3.2. This Protest is being filed on [__/__/____], within the protest period and is therefore timely.

3.3. Pursuant to O.C.G.A. § 48-2-46, a protest mailed via the United States Postal Service is deemed filed as of the postmark date. [If applicable: This Protest was deposited in the U.S. Mail, postage prepaid, on the date set forth above. / This Protest was filed electronically via the Georgia Tax Center on the date set forth above.]

4. STATEMENT OF FACTS

4.1. [Background of Taxpayer — entity formation, tax year, filing history, residency, business operations.]

4.2. [Facts giving rise to the disputed item — transactions, contracts, expenses, federal treatment, residency facts.]

4.3. [Department's audit history, IDRs, conferences, position changes.]

4.4. [Material correspondence and dates: notice of audit, IDR responses, audit findings letter, proposed adjustments.]

5. ISSUES PRESENTED

5.1. Whether the Department erred in [concise issue statement #1].

5.2. Whether the Department erred in [concise issue statement #2].

5.3. Whether the assessed penalties under O.C.G.A. § 48-7-86 should be abated for reasonable cause.

5.4. Whether the period of limitation in O.C.G.A. § 48-2-49 / § 48-7-82 bars all or part of the Proposed Assessment.

6. LEGAL ARGUMENT

6.1. The Department's Adjustment Is Contrary to Georgia Income Tax Law

6.1.1. Georgia conforms to the Internal Revenue Code as of [CURRENT IRC CONFORMITY DATE — see O.C.G.A. § 48-1-2(14)], with statutorily enumerated decoupling provisions.

6.1.2. [Substantive argument — apply Georgia statutes, regulations, DOR Letter Rulings, and Georgia case law to the facts.]

6.1.3. [Cite controlling authority: e.g., Ga. Comp. R. & Regs. r. 560-7-x; Court of Appeals decisions; DOR Policy Bulletins.]

6.2. The Statute of Limitations Bars [Year/Item]

6.2.1. Under O.C.G.A. § 48-2-49 and § 48-7-82, the Department must assess additional income tax within three (3) years from the later of the return's due date (with extensions) or filing date.

6.2.2. The return for tax year [YYYY] was filed on [__/__/____]; the limitations period expired on [__/__/____].

6.2.3. [If applicable: No exception applies. Taxpayer did not omit more than 25% of gross income (six-year rule), did not fail to file, and did not commit fraud. The Department did not obtain a written waiver under O.C.G.A. § 48-2-49(d).]

6.3. The Adjustment Misapplies the Federal Conformity Provisions

6.3.1. [If federal RAR-driven: address O.C.G.A. § 48-7-82(e) reporting requirement and the 180-day amended-return obligation.]

6.4. The Department's Methodology Is Arbitrary

6.4.1. [Where applicable: challenge sampling methodology, statistical projections, allocation/apportionment under O.C.G.A. § 48-7-31, or transfer-pricing positions.]

7. BURDEN OF PROOF

7.1. Taxpayer acknowledges that under O.C.G.A. § 48-2-59 and Georgia decisional law a Department assessment is prima facie correct, and that on judicial review the taxpayer-petitioner bears the burden of proof.

7.2. The exhibits and statements herein, together with [specify supporting evidence — books and records, federal returns, contracts, sworn statements], are sufficient to rebut the Department's presumption and to establish, by a preponderance of the evidence, that the Proposed Assessment is incorrect.

7.3. With respect to fraud penalties or any allegation of intentional misconduct, the burden remains on the Department under controlling Georgia authority.

8. PENALTY AND INTEREST ABATEMENT

8.1. Reasonable Cause. Pursuant to O.C.G.A. § 48-7-86 and Department policy, penalties are subject to abatement upon a showing of reasonable cause and absence of willful neglect. Taxpayer relied on [describe reliance — written advice of qualified tax professional, prior DOR guidance, Letter Ruling, ambiguous statute, federal/state conformity gap] and exercised ordinary business care.

8.2. First-Time Abatement. Taxpayer has [a clean compliance history / no penalties in the prior 3 years] and qualifies for first-time penalty relief consistent with Department practice.

8.3. Interest. While statutory interest under O.C.G.A. § 48-2-40 generally cannot be waived, Taxpayer reserves all rights to interest abatement to the extent the delay was caused by Department error or unreasonable delay.

9. HEARING REQUEST AND RESERVATION OF RIGHTS

9.1. Conference Requested. Taxpayer requests an informal protest conference with the Compliance Division pursuant to Department procedure and the Georgia Taxpayer Bill of Rights, O.C.G.A. § 48-1-9.

9.2. Representation. Taxpayer is or will be represented by [ATTORNEY/CPA NAME], [BAR/LICENSE NO.], with a duly executed Form RD-1061 (Power of Attorney) on file.

9.3. Reservation. Taxpayer reserves the right to (a) supplement this Protest with additional facts, exhibits, and authority; (b) raise additional issues identified through further review; (c) appeal an Official Assessment to the Georgia Tax Tribunal under O.C.G.A. § 50-13A-9 within thirty (30) days of issuance, or in the alternative to Superior Court under O.C.G.A. § 48-2-59; and (d) seek de novo review of all issues.

9.4. No Waiver. Nothing in this Protest constitutes a concession of liability, an admission, or a waiver of any defense, including limitations, constitutional, or apportionment defenses.

10. RELIEF REQUESTED

WHEREFORE, Taxpayer respectfully requests that the Department:

• A. Withdraw the Proposed Assessment in its entirety; or in the alternative
• B. Reduce the Proposed Assessment to $[____] consistent with the corrected computation in Exhibit [____];
• C. Abate all penalties for reasonable cause and absence of willful neglect;
• D. Recompute interest consistent with the reduced principal amount;
• E. Schedule an informal protest conference; and
• F. Grant such further relief as the Department deems just and proper.

11. VERIFICATION AND SIGNATURE

I, [SIGNATORY NAME], [TITLE — e.g., President / Member / Taxpayer], declare under penalty of perjury under the laws of the State of Georgia that I have reviewed the foregoing Protest and the attached exhibits, and that the factual statements contained herein are true and correct to the best of my knowledge, information, and belief.

Date: [__/__/____]

[________________________________]

[SIGNATORY NAME]

[TITLE]

[TAXPAYER LEGAL NAME]

Submitted by counsel:

[LAW FIRM / CPA FIRM]

By: [________________________________]

[ATTORNEY/CPA NAME], Georgia Bar No. [####] / CPA Lic. No. [####]

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

12. CERTIFICATE OF SERVICE

I hereby certify that on the [____] day of [_______________], 20[____], I filed the foregoing PROTEST OF PROPOSED ASSESSMENT with the Georgia Department of Revenue by [Georgia Tax Center electronic filing / United States Mail, postage prepaid / IRS-designated private delivery service] addressed to:

Georgia Department of Revenue
Compliance Division — Protest Resolution Unit
1800 Century Boulevard, NE
Atlanta, Georgia 30345-3205

[________________________________]

[ATTORNEY/CPA NAME]

13. SCHEDULE OF EXHIBITS

14. GEORGIA PRACTICE NOTES

• Two-track procedure. The Georgia state income tax controversy ladder runs: (1) Notice of Proposed Assessment → administrative protest under O.C.G.A. § 48-2-46; (2) Notice of Official Assessment → election between (a) Georgia Tax Tribunal under O.C.G.A. § 50-13A-9 or (b) Fulton County Superior Court / county of residence under O.C.G.A. § 48-2-59, in either case within thirty (30) days; (3) appeal of Tribunal decision to Fulton County Superior Court under O.C.G.A. § 50-13A-17 within thirty (30) days; (4) further appeal to the Georgia Court of Appeals or Supreme Court of Georgia.
• Protest deadline ambiguity. O.C.G.A. § 48-2-46 sets a default 30-day window "or such other time limit as may be specified within the notice." The DOR's Taxpayer Bill of Rights guidance and the TSD-1 form state 45 days. The deadline printed on the face of the notice controls; calendar conservatively.
• Pay-to-play not required. Unlike federal Tax Court / district court refund litigation, Georgia does not require prepayment to access the Tax Tribunal. Superior Court appeals under O.C.G.A. § 48-2-59 require posting a bond OR paying the admittedly owed portion.
• Bond requirement (Superior Court route). O.C.G.A. § 48-2-59(a) requires payment of the tax admittedly owed plus a surety bond for the disputed amount, or in the alternative an affidavit of indigence. The Tax Tribunal route does NOT require a bond — frequently the better choice.
• Burden of proof. Assessments are prima facie correct (§ 48-2-59(c)); on de novo review the taxpayer is the plaintiff and bears the burden by a preponderance, except the Department bears the burden on fraud and certain penalty additions.
• Limitations periods. § 48-2-49 / § 48-7-82: three (3) years from the later of due date or filing; six (6) years for omission of >25% of gross income; no limit for failure to file or fraud. RAR-driven adjustments require reporting within 180 days under § 48-7-82(e); failure to report extends the limitations period.
• Small Claims election. For income tax disputes under $15,000 (principal + penalties, excluding interest) the Tax Tribunal Small Claims Division offers no filing fee and an informal hearing — but the decision is FINAL with NO right of appeal. Election should be informed and in writing.
• Power of attorney. File Form RD-1061 with the Department to authorize representation; the Tax Tribunal requires its own appearance entry.
• Confidentiality. Tax return information is confidential under O.C.G.A. § 48-7-60 and § 48-2-15. Exhibits containing taxpayer identifiers should be appropriately redacted in any public filing.
• Federal interaction. A federal RAR triggers a Georgia reporting obligation under O.C.G.A. § 48-7-82(e); failure to file an amended return within 180 days of the federal final determination extends the SOL indefinitely as to those adjustments.

15. SOURCES AND REFERENCES

• O.C.G.A. § 48-2-35 (Refunds) — https://law.justia.com/codes/georgia/title-48/chapter-2/article-2/section-48-2-35/
• O.C.G.A. § 48-2-46 (Procedures for protests) — https://law.justia.com/codes/georgia/title-48/chapter-2/article-2/section-48-2-46/
• O.C.G.A. § 48-2-49 (Periods of limitation for assessment of taxes) — https://law.justia.com/codes/georgia/title-48/chapter-2/article-2/
• O.C.G.A. § 48-2-59 (Appeals; bond; burden of proof) — https://law.justia.com/codes/georgia/title-48/chapter-2/article-2/section-48-2-59/
• O.C.G.A. § 48-7-82 (Income tax limitations period) — https://law.justia.com/codes/georgia/title-48/chapter-7/article-4/section-48-7-82/
• O.C.G.A. § 50-13A-1 et seq. (Georgia Tax Tribunal Act) — https://law.justia.com/codes/georgia/title-50/chapter-13a/
• Ga. Comp. R. & Regs. r. 616-1-3 (Tribunal Rules of Procedure) — https://rules.sos.ga.gov/gac/616-1-3
• Georgia Department of Revenue, Protests and Appeals — https://dor.georgia.gov/protests-and-appeals
• Georgia Department of Revenue, What to do if you receive a Proposed Assessment — https://dor.georgia.gov/taxes/audits-and-collections/audits/what-do-if-you-receive-proposed-assessment
• Georgia Taxpayer Bill of Rights (O.C.G.A. § 48-1-9) — https://dor.georgia.gov/taxpayer-bill-rights
• Form TSD-1 (Protest of Proposed Assessment or Refund Denial) — https://dor.georgia.gov/document/form/tsd-1-protest-proposed-assessment-or-refund-denial/download
• Georgia Tax Tribunal — https://gataxtribunal.georgia.gov/
• Form RD-1061 (Power of Attorney) — https://dor.georgia.gov/

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. A Georgia-licensed attorney or CPA in good standing must review and customize this document before submission. Statutes, regulations, and Department procedures change frequently; verify all citations and deadlines before filing.