Tax Audit Protest and Appeal — Georgia

Tax Audit Protest and Appeal (GEORGIA)

Quick-Reference Summary

Part A — Informal Conference Request Letter / Audit-Stage Response

Sender Letterhead

[TAXPAYER / FIRM NAME]
[STREET ADDRESS]
[CITY], GA [ZIP]
Phone: [____________]
Email: [____________]
FEIN: [____________]
GA Tax Account No.: [____________]
GA Bar No. (if attorney): [____________]

Date and Delivery

Date: [__/__/____]

Sent Via:
☐ Email to assigned auditor: [[email protected]]
☐ Georgia Tax Center secure messaging
☐ U.S. Certified Mail, Return Receipt Requested (Tracking No. [____________])

To:
[Auditor Name], Field Auditor
Georgia Department of Revenue, Audits Division
[Regional Office Address]

Re: Response to Preliminary Audit Findings and Request for Conference
Taxpayer: [_____________________]
Audit / Case No.: [_____________________]
Tax Type: [Sales/Use / Individual Income / Corporate Income / Withholding / IFTA / Other]
Audit Period(s): [____________]
Disputed Tax: $[____________]

Body of Letter

Dear [Auditor Name]:

This letter responds to the preliminary audit findings dated [__/__/____] and requests a conference under the Georgia Taxpayer Bill of Rights (O.C.G.A. § 48-2-1 et seq.) prior to issuance of a Notice of Proposed Assessment.

1. Adjustments Disputed. [DESCRIBE]

2. Grounds.
(a) Factual. [_____________________]
(b) Legal. Cite O.C.G.A. § [____]; Ga. Comp. R. & Regs. r. [____]; Georgia appellate decisions on point.
(c) Computational / Sampling. [_____________________]

3. Exemption Certificates / Documentation. Enclosed at Exhibit A are [_____] certificates of resale, manufacturing exemption certificates (Form ST-5), and contemporaneous business records supporting nontaxable treatment.

4. Conference Request. Taxpayer requests an audit conference under O.C.G.A. § 48-2-1 with the Audit Supervisor and assigned auditor at a mutually convenient time.

5. Penalty Mitigation. Should any deficiency be sustained, Taxpayer requests waiver of penalties under O.C.G.A. § 48-2-43 and Form TSD-3, citing reasonable cause: [SPECIFY].

Respectfully submitted,

[Signature]
[Name, Title]

Part B — Formal Protest of Proposed Assessment (Form TSD-1)

Caption

Georgia Department of Revenue
Protest of Proposed Assessment or Refund Denial — Form TSD-1

PROTEST NARRATIVE (Attachment to TSD-1, Section 6)

1. Statement of Issues.

a. Whether [LEGAL ISSUE 1 — e.g., the Department erred in disallowing the manufacturing exemption under O.C.G.A. § 48-8-3(34.3) for the equipment listed in Exhibit B].

b. Whether [LEGAL ISSUE 2 — e.g., the Department's audit sample fails the requirements of Ga. Comp. R. & Regs. r. 560-12-1-.18].

c. Whether [LEGAL ISSUE 3 — e.g., Section 48-2-44 negligence penalty should be abated for reasonable cause].

2. Factual Background.
[NUMBERED PARAGRAPHS RECITING TAXPAYER'S BUSINESS, AUDIT HISTORY, TRANSACTIONS AT ISSUE.]

3. Argument.

A. [Substantive Issue 1].
The controlling statute is O.C.G.A. § [____]. The implementing regulation is Ga. Comp. R. & Regs. r. [____]. Georgia courts have held [citing case]. Applied to these facts: [_____].

B. Audit Methodology.
The Department's sample is distortive because [specify: outliers, period mismatch, missing strata]. Under Ga. Comp. R. & Regs. r. 560-12-1-.18 and Department Policy Statement [____], the sample must produce a result that fairly reflects the taxpayer's liability. The Department's projection inflates the deficiency by approximately $[____]; the corrected calculation at Exhibit C reduces the proposed assessment to $[____].

C. Penalty Abatement.
Under O.C.G.A. § 48-2-43, the Commissioner may waive penalties when failure to comply is due to reasonable cause. Taxpayer exercised ordinary business care because [SPECIFIC FACTS — reliance on advisors, ambiguous law, system error, first offense]. See Form TSD-3 (Request for Penalty Waiver).

D. Statute of Limitations.
Tax periods [____] are time-barred under O.C.G.A. § 48-2-49 because the Notice of Proposed Assessment was issued more than 3 years after the return was filed/due and no fraud or non-filing exception applies.

4. Inability-to-Pay Note. Taxpayer acknowledges that inability to pay is NOT a valid protest ground under Department policy and that payment-plan, offer-in-compromise (Form OIC-1), and penalty-waiver requests are pursued separately through GTC. (These matters are also outside the Georgia Tax Court's jurisdiction — O.C.G.A. § 15-5B-11.)

5. Relief Requested.
☐ Withdraw the proposed assessment in full
☐ Modify to $[____________]
☐ Schedule a conference with the Compliance Division / Office of Tax Policy
☐ Waive penalties

6. Conference Election. ☐ Taxpayer requests a conference (telephonic / in-person / virtual). ☐ No conference — decide on submission.

7. Power of Attorney. Form RD-1061 enclosed authorizing [REPRESENTATIVE].

Exhibits:
A — Copy of Notice of Proposed Assessment / Refund Denial
B — Audit workpapers and Department's sample/projection schedules
C — Taxpayer's corrected computation
D — Exemption certificates / Forms ST-5
E — Contracts, invoices, and business records
F — Form RD-1061 Power of Attorney
G — Form TSD-3 Penalty Waiver Request (if applicable)

Signature: _______________________________
[Name, Title, Date]

Mail to address printed on the Notice (typically):
Georgia Department of Revenue
Compliance Division — Protest Unit
1800 Century Blvd. NE
Atlanta, GA 30345

Or upload via Georgia Tax Center: https://gtc.dor.ga.gov

Part C — Petition / Appeal to the Georgia Tax Court (from an Official Assessment)

C-1. Cover Letter to the Clerk of the Georgia Tax Court

[FIRM LETTERHEAD]

Date: [__/__/____]

Via: ☐ Georgia Tax Court electronic filing system (O.C.G.A. § 15-5B-7) ☐ Certified Mail RRR ☐ Hand delivery

To:
Clerk, Georgia Tax Court
[Confirm current clerk address / e-filing instructions at https://taxcourt.georgiacourts.gov]

Copy to:
Office of the Attorney General of Georgia, Tax Section
40 Capitol Square SW
Atlanta, GA 30334-1300

And:
Commissioner, Georgia Department of Revenue
1800 Century Blvd. NE
Atlanta, GA 30345

Re: [Taxpayer] v. Georgia Department of Revenue
Petition for Review of Official Assessment dated [__/__/____]
Tax Type: [____] / Period(s): [____] / Amount in Controversy: $[__________]

Dear Clerk:

Enclosed for filing pursuant to O.C.G.A. §§ 15-5B-11 and 15-5B-12 is Petitioner's Petition for Review, contesting the Official Assessment of the Georgia Department of Revenue dated [__/__/____] (Exhibit A). This petition is filed within 45 days of the issued date on the Official Assessment as required by O.C.G.A. § 48-2-59 (as amended by SB 141 (2025)) and is therefore timely. Under O.C.G.A. § 15-5B-13, the filing of this petition operates as a stay of enforcement or collection activity pending resolution.

Designation of Case Type:
☐ Regular case (appealable to the Court of Appeals of Georgia)
☐ Small claims case (O.C.G.A. § 15-5B-18 — tax and penalties in controversy, excluding interest, below the threshold set by the court's rules; judgment is final, non-appealable, and non-precedential)

C-2. Petition for Review (Verified)

IN THE GEORGIA TAX COURT

Case No.: [__________]

PETITION FOR REVIEW OF OFFICIAL ASSESSMENT

1. Parties. Petitioner is [____], a [individual / corporation / LLC] with its principal place of business / residence at [____]. Respondent is the Georgia Department of Revenue, acting through the State Revenue Commissioner.

2. Jurisdiction. This Court has jurisdiction under O.C.G.A. § 15-5B-11 to review a taxpayer's appeal of an official assessment issued by the Georgia Department of Revenue. Venue and statewide jurisdiction are conferred by the Georgia Tax Court Act of 2025 and the constitutional amendment approved by the voters on November 5, 2024.

3. Timeliness. This Petition is filed within 45 days of the Official Assessment dated [__/__/____], as required by O.C.G.A. § 48-2-59.

4. The Assessment. On [__/__/____] Respondent issued an Official Assessment (Letter ID [____]) asserting [tax / penalty / interest] of $[____] for tax type [____] and period(s) [____]. A copy is attached as Exhibit A.

5. Issues Presented.
   a. [Issue 1 — e.g., whether the transactions at issue qualify for the [exemption/credit] under O.C.G.A. § [____].]
   b. [Issue 2 — e.g., whether the Department's audit sample and projection comply with Ga. Comp. R. & Regs. r. 560-12-1-.18.]
   c. [Issue 3 — penalty abatement for reasonable cause under O.C.G.A. § 48-2-43.]
   d. [Issue 4 — statute of limitations under O.C.G.A. § 48-2-49, if applicable.]

6. Grounds for Relief. [SUMMARY — see attached Memorandum in Support. On questions of law, this Court owes no deference to the Department's interpretations (O.C.G.A. § 48-2-59(e)).]

7. Burden. Petitioner acknowledges that the assessment is prima facie correct and that Petitioner bears the burden of proof, except where the Department bears the burden by statute (e.g., fraud and certain penalty additions).

8. Prayer for Relief. Petitioner respectfully requests that the Court:
   a. Vacate the Official Assessment in full; or in the alternative redetermine the assessment to $[____];
   b. Abate all penalties;
   c. Award costs and any fees permitted under O.C.G.A. § 15-5B-20; and
   d. Grant such further relief as is just and proper.

Verification. I, [____], verify under penalty of perjury that the factual statements in this Petition are true and correct to the best of my knowledge.

Signature: _______________________________
[Name, Title, Date]

Respectfully submitted,

[ATTORNEY SIGNATURE]
[Name, GA Bar No.]
[Firm / Address / Phone / Email]

Enclosures:

• Petition for Review (verified)
• Memorandum in Support
• Copy of Official Assessment (Exhibit A)
• Copy of TSD-1 protest and GDOR Protest Decision (if applicable) (Exhibits B–C)
• Form RD-1061 Power of Attorney
• Certificate of Service
• Filing fee per the Georgia Tax Court's rules (O.C.G.A. § 15-5B-14): $[____]

Alternative — Superior Court Cover Letter

To: Clerk, Superior Court of [County] County, Georgia

Re: [Taxpayer] v. Commissioner, Georgia Department of Revenue — Appeal under O.C.G.A. § 48-2-59

Enclosed please find Complaint/Petition for Review, Verification, the written statement agreeing to pay admitted taxes, Surety Bond (Exhibit B), and the filing fee. Service is being effected on the Commissioner and the Attorney General. The appeal is filed within 45 days of the commissioner's decision as required by O.C.G.A. § 48-2-59.

[Signature block]

Part D — Pre-Filing Checklist

Notice and Deadline Verification

☐ Identified notice type (Proposed Assessment vs. Official Assessment vs. Refund Denial vs. Tax Execution)
☐ Calendared 45-day deadline from the issued date on the notice (O.C.G.A. §§ 48-2-46, 48-2-59, SB 141 (2025))
☐ Confirmed delivery method (USPS postmark date governs; metered dates not recognized)
☐ For Refund Denial: tracked the later-of-two-years/45-days appeal window

Form TSD-1 / Petition Preparation

☐ Form TSD-1 completed for protests of Proposed Assessment / Refund Denial (Department-administrative step; not a court filing)
☐ Letter ID copied accurately from the notice
☐ Conference checkbox marked (recommended)
☐ Form RD-1061 Power of Attorney executed and current
☐ Form TSD-3 Penalty Waiver Request prepared (if applicable)

Forum Selection (Official Assessment)

☐ Confirmed the matter is within Georgia Tax Court jurisdiction (O.C.G.A. § 15-5B-11: official-assessment appeal, refund-denial, tax-execution challenge, regulation declaratory judgment, or apportionment-method denial)
☐ Elected the Georgia Tax Court (regular or small claims) OR the appropriate Superior Court — taxpayer's choice
☐ For small claims: confirmed the current threshold in the court's rules (O.C.G.A. § 15-5B-18) and understood that the judgment is final and non-appealable
☐ For Superior Court: prepared written statement to pay admitted tax AND initiated the surety bond (O.C.G.A. § 48-2-59(c))
☐ Confirmed the Georgia Tax Court filing fee and electronic-filing procedure at https://taxcourt.georgiacourts.gov

Substantive

☐ Audit workpapers, exemption certificates, and sample documentation reviewed
☐ O.C.G.A. § 48-2-49 SOL on assessment verified
☐ Identified all statutory exemptions, credits, and rate provisions at issue
☐ Reasonable-cause penalty argument supported with facts and affidavits
☐ Pulled Georgia Tax Court / prior Tribunal decisions, Department Letter Rulings, Policy Statements, and Georgia appellate decisions

Service

☐ Petition served on Commissioner AND Attorney General (Tax Section)
☐ Certificate of Service prepared
☐ Georgia Tax Court electronic-filing account created (if applicable) (O.C.G.A. § 15-5B-7)

Post-Filing

☐ Confirmed receipt of stamped petition
☐ Confirmed that filing stayed enforcement/collection (O.C.G.A. § 15-5B-13)
☐ Diaried discovery and pre-hearing conference dates
☐ Considered protective payment to stop interest accrual under O.C.G.A. § 48-2-40
☐ Notified taxpayer's CFO/accountant of litigation hold

Sources and References

• Georgia Tax Court (official — judicial branch): https://taxcourt.georgiacourts.gov
• GDOR "Georgia Tax Court" overview: https://dor.georgia.gov/georgia-tax-court
• GDOR "Protests and Appeals" page: https://dor.georgia.gov/protests-and-appeals
• "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
• Form TSD-1 (Protest of Proposed Assessment or Refund Denial): https://dor.georgia.gov/documents/tsd-1-protest-proposed-assessment-or-refund-denial
• Form RD-1061 (Power of Attorney): https://dor.georgia.gov/documents/rd-1061-power-attorney-and-declaration-representative
• Form TSD-3 (Request for Penalty Waiver): https://dor.georgia.gov/tsd-3-request-penalty-waiver
• O.C.G.A. § 15-5B-1 et seq. (Georgia Tax Court Act of 2025) — added by 2024 Ga. Laws 601 (HB 1267), eff. 7/1/2026
• O.C.G.A. § 48-2-46 (Protest of proposed assessment; 45-day window, SB 141 (2025))
• O.C.G.A. § 48-2-49 (SOL on assessment)
• O.C.G.A. § 48-2-59 (Appeals; admitted-tax statement; bond; no deference on questions of law; 45-day window, SB 141 (2025))
• SB 141 (2025) — extended protest/appeal windows from 30 to 45 days, eff. 7/1/2025
• Constitutional amendment approved 11/5/2024 — created the judicial-branch Georgia Tax Court with statewide jurisdiction; decisions appealable to the Court of Appeals of Georgia
• Georgia Tax Center (GTC) portal: https://gtc.dor.ga.gov
• Hawes v. Cordell Ford Co., 223 Ga. 868 (1968) (taxpayer burden)