Tax Audit Protest and Appeal — Georgia

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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 Tax Tribunal / Court of Appeals 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.

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 — Appeal Cover Letter to Georgia Tax Tribunal / Superior Court

[FIRM LETTERHEAD]

Date: [__/__/____]

Via: ☐ GTT e-filing portal ☐ Certified Mail RRR ☐ Hand delivery

To:
Clerk, Georgia Tax Tribunal
225 Peachtree Street NE, Suite 400, South Tower
Atlanta, GA 30303

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. § 50-13A-13 and Ga. Comp. R. & Regs. r. 616-1-3 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 and is therefore timely.

Designation of Case Type:
☐ Regular case (regardless of amount)
☐ Small claims case (income tax < $15,000 OR other taxes < $50,000, excluding interest; non-appealable)

Statement of Facts and Law.

1. Parties. Petitioner is [____]. Respondent is the Georgia Department of Revenue.

2. Jurisdiction. The Tribunal has jurisdiction under O.C.G.A. § 50-13A-9 to review final assessments and tax executions issued by GDOR.

3. Timeliness. Filed within 45 days of the Official Assessment.

4. Issues Presented.
   a. [Issue 1]
   b. [Issue 2]
   c. [Issue 3 — penalty abatement under O.C.G.A. § 48-2-43]

5. Grounds for Relief. [SUMMARY — see attached Memorandum in Support.]

6. Prayer for Relief. Petitioner requests that the Tribunal vacate the Official Assessment in full; alternatively, redetermine the assessment to $[____]; abate all penalties; and grant such further relief as is just.

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 Tribunal Rule 616-1-3-.04 enclosed: $[____].

Respectfully submitted,

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

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, Surety Bond Application (Exhibit B), and the filing fee. Service is being effected on the Commissioner and the Attorney General. The taxpayer requests issuance of the bond and a hearing date.

[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
☐ 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
☐ 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)

☐ Calculated principal-plus-penalty amount (excluding interest) for small-claims eligibility
☐ Elected Tax Tribunal (regular or small claims) OR Superior Court (with bond)
☐ For Superior Court: surety bond application initiated
☐ Confirmed Tribunal filing fee paid

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 GTT decisions, Department Letter Rulings, Policy Statements, and Georgia appellate decisions

Service

☐ Petition served on Commissioner AND Attorney General (Tax Section)
☐ Certificate of Service prepared
☐ Tribunal e-filing portal account created (if applicable)

Post-Filing

☐ Confirmed receipt of stamped petition
☐ Diary 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

• 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
• Georgia Tax Tribunal: https://gataxtribunal.georgia.gov
• GTT "File a Petition": https://gataxtribunal.georgia.gov/how-do-i-file-petition
• GTT Petition Form: https://gataxtribunal.georgia.gov/document/form/tribunal-petition-form-updated-062021/download
• O.C.G.A. § 48-2-46 (Protest of proposed assessment)
• O.C.G.A. § 48-2-49 (SOL on assessment): https://law.justia.com/codes/georgia/title-48/chapter-2/article-2/section-48-2-49/
• O.C.G.A. § 48-2-59 (Appeals): https://law.justia.com/codes/georgia/title-48/chapter-2/article-2/section-48-2-59/
• O.C.G.A. Title 50, Chapter 13A (Georgia Tax Tribunal Act): https://law.justia.com/codes/georgia/title-50/chapter-13a/
• Ga. Comp. R. & Regs. Chapter 616-1-3 (GTT Rules): https://rules.sos.ga.gov/gac/616-1-3
• Hawes v. Cordell Ford Co., 223 Ga. 868 (1968) (taxpayer burden)
• Georgia Tax Center (GTC) portal: https://gtc.dor.ga.gov