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As i understand it the state does not turn over accounts to…

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As i understand it...

As i understand it the state does not turn over accounts to collection agencies that have not exceeded the statute of limitation of 7 years but my tax i owed was from 2008 and they notifiied me w/ an "intent to offset" on august 29th, 2016. then i rec'd a notice from a collection in april of this year trying to collect for the state however the numbers they are using is less than what the state was seeking? i checked my credit report and i do not have a lien filed which they could have extended w/in the 7 year period. additionally since i filed the return but did not pay the taxed as the time the could'nt qualify it as a "substanial ommision" which would give them unlimited time to file it. I am not even sure that i did'nt pay the damn taxes but i can't find a record and never heard a thing from these people for over 8 years despite promptly filing and paying my taxes every year since. i'm trying to figure out whether to work w/ them or let this go since it does'nt look like they can collect it? i am retired and don't have a lot of income or accounts they can levy. what say you?

Submitted: 7 months ago.Category: Tax
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11/29/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 7 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,750
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Hello. Happy Holidays!! Thank you for choosing this Q&A service for assistance. My name is***** am reading over your inquiry. I will respond to you shortly.

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Tax Professional: Tax.appeal.168, Tax Accountant replied 7 months ago

What state are you located in?

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Customer reply replied 7 months ago
state of georgia. I filed state income tax returns indicating i owed ~$3600 for the year ended 12/31/08. I had planned to carry over losses from subsequent years to offset this year. i changed accountants after '08 and the new accountant inadvertently did'nt pick up on this matter w/ the state return. He addressed it w/ the federal return w/ the following year(s) filings but somehow he and i either both missed the state issue or i really did pay the tax? I don't have copies of checks from that far back to prove it however i've always paid my bills and this has come as a total shock. At first i thought it was a scam until my accountant who i've had since that time verified it's real. He admitts this is beyond his area of expertise. The way they've turned it over to a collection agency makes me think they neglected to lien me w/in the allotted time,(7 yrs?),,and can't collect it from me now or place a lien? Based on my reading and research my situation does'nt appear to fall into one of the categories (fraud or substantial ommission) which would permitt the state to lien me after the 7 year period? Since they turned it over to an agency i'm not able to try and work out an arrangement w/ the state even if i wanted to handle it directly w/ them. I would'nt mind going ahead and paying the original tax but now the penalties an interest are almost $10,000 as shown on the first notice i ever rec'd via their "notice to offset" rec'd 11/29/16. The second correspondence ever rec'd was the letter from a collection agency indicating a totally different amount of ~ $7400. A current printout of my account w/ the state provided by my accountant shows another totally different amount closer to ~$7500; each letter or printout showing the balance of what i supposedly owe has been totally different! Should i worry about this or not? Can this collection agency also file a lien against my accounts and property on behalf of the state. "The other shoe has'nt dropped" yet and i've heard nothing now for 7 months?
Tax Professional: Tax.appeal.168, Tax Accountant replied 7 months ago

I am reading over your response. I will get back to you shortly.

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Tax Professional: Tax.appeal.168, Tax Accountant replied 7 months ago

I apologize, but I will not be able to provide you with any guidance on this matter either. As this is the case, I am going to opt out and release the question back into the question queue so that someone else may be able to assist you.

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 7 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,085
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Hi from just answer. I'm PDtax. I see the first expert opted out. I can assist.

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Customer reply replied 7 months ago
i'm assuming they will not be paid for wasting my time? will you answer my question here?
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 7 months ago

I am back. wasn't feeling well.

It is possible that you still legally owe. It is also possible you don't.

Georgia has a seven year statute of limitations on collection of taxes. That part is correct. The period starts when the tax is assessed (generally the filing date of the return) and ends 7 years later. But they can extend the seven year period, I believe, for a number of additional 7 year periods.

The key is the legal process they executed. Any flaws, and their claim becomes legally unenforceable.

See next posting...

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Customer reply replied 7 months ago
yeah,,i already know all that! they did'nt file a lien against me and turned it over to collection 7 months after contacting me about it 8 years later. they followed no legal steps. i checked my credit report and do not have any liens or judgments against me.
Customer reply replied 7 months ago
i'm very disappointed you apparently went online to see the same stuff i've already exhausted. i need an expert w/ experience on these matters in georgia. please recuse yourself. thanx
Tax Professional: Barbara, Enrolled Agent replied 7 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,358
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Different expert here - my name is ***** ***** please permit me to assist you.

You are mistaken that you cannot contact the GA Department of Revenue because a collection agency has contacted you.

To be honest, that would be my first course of action. I realize that sounds simplistic, but I would want verification that I owed the tax and the EXACT AMOUNT I owed, if any. The number to call is(###) ###-####between the hours of 8:00 am and 4:30 pm.

Did you receive a Notice of State Tax Execution from the GA Department of Revenue BEFORE the collection agency contacted you?

Thank you.

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Customer reply replied 7 months ago
please reread my earlier answers: first notice i recall ever receiving from the state was a "notice to offset" then it was turned over to collection agency. why would they do that (thrn over to collection) and not file lien against me if they had recourse and didn't screw up? why is amount collection agency has so much different than what state says? do you have any experiemce w/ georgia or speaking in general because georgia is different!!
Customer reply replied 7 months ago
i didn't say i could contact the state,i said i couldn't pay them directly or work out a payment plan w/ them after they've turned it over to collections!
Tax Professional: Barbara, Enrolled Agent replied 7 months ago

I did read your question and subsequent answers.

At this point, I will opt out so another expert can assist you.

Thank you.

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Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 7 months ago
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,133
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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Hello! I see you are having an issue with GA. They are absolutely horrible to work with. I have had experience with them and the collection agencies that they use.

Barbara is correct in that the best way is to contact the state themselves. I had a client who worked for a Texas corporation in the Dutch West Indies. He worked and lived on an island since 1990. He moved from the Island to Houston, TX in 2006, and retired from the company in 2008. He moved to GA in 2011. In 2013, the State of GA said that he had not filed an income tax return for 2004. They said that since he opened a GA bank account in 2004 and used his sister's GA address, that he was liable for GA tax on his full income, and they assessed it.

I fought it long and hard, with several letters. I sent copies of his Federal tax return showing that he was a bona fide resident of a foreign country. I sent copies of his Dutch resident tax returns. I obtained letters from his employer stating that he had worked outside of the US since 1990. The State of GA auditor would not budge, and insisted that he had to pay GA tax. I finally wrote a letter to Lynne Riley, the Commissioner of the GA Dept of Revenue. I just did this in July. She actually answered my letter and abated the tax, interest and penalty. This was the only effective response I had after writing several letters.

You can reach her at:

Lynne Riley
State Revenue Commissioner
Department of Revenue*****/p>

Atlanta, GA 30345

Unfortunately, GA is not alone in how it deals with what it believes are unpaid taxes. Alabama is actually worse. I have two cases in front of the AL Board of Tax Appeals right now, for people who moved outside of AL, filed part-year returns for the year they left, purchased homes outside of AL, got married in one case, had a child in the other, and yet AL has come back and assessed tax for 2011 and 2012. They say it is up to the Taxpayers to prove that they do not have to owe tax, rather than the state proving that they do.

In LA, I had a client get pursued by the LA Dept of Revenue for taxes on income earned the year prior to moving into LA. Here in IL the state regularly goes after people who are not residents. I had one state auditor tell me that even if it was beyond the statute of limitations, they will try to collect anyway, as many people and businesses will pay because that is easier and cheaper than fighting.

So try writing to the GA commissioner and see what happens. As I said, this was the ONLY effective thing that I tried, even though I had cases and rulings to back me up.

Thanks!

Roger

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Customer reply replied 7 months ago
roger,,, i've known they were horrible for a long time! i had other matters w/ them on state sales tax that took me several years to get resolved. i wanna know from someone who has had a collection turned over against them if they legally can lien me property and actually collect on the debt since it appears they have not followed their own protocols and it's after 7 years. i wanna hear from someone who can verify this is why they turned it over to collections and never filed any liens against me,, because they screwed up and are now throwing a hail mary pass trying to get whatever they can? i would like someone w/ experience working w/ ms riley to verify they have no legal recourse w/ which to pursue this matter against me? i maintain i paid the state already as i always have and beyond incensed that these nincompooos (well established) are hassling me for something that's almost 9 years old!
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 7 months ago

Based on my experience with Georgia, as well as several other states, is that they will try any means that they can, even if it is beyond the statute of limitations. The collection agencies are empowered to perform with all the rights that the state has. They can and will place liens, levy bank accounts, and do whatever they can to try to get the money. Their attitude is sure, you can appeal it, you can take them to court, but they are immune from judgements for legal fees (very rarely awarded) so they bank on the fact that you won't spend what it takes to stop them, it is cheaper to just pay and move on.

Take Illinois for example. I have a taxpayer who (they say) paid his state payroll taxes late in 2010 and 2011. I mentioned it above. The STtae in JUNE of this year - 2017 - assessed late payment penalties. The statute of limitations is LONG past - by 4 years! Yet they assessed the tax. Fortunately, this client is one who values the principal of the matter and will spend close to what the tax is on legal fees and our fees, but he wants to prove that he is correct, not the State. The auditor I spoke with could not believe it. He even commented as to why the guy didn't just pay because it would be less costly when you consider his time. Go figure!

If you would like, request a premium service, and we can talk and I can get your information, and I would be happy (I enjoy challenges) to write a few letters to GA to try to get this resolved.

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Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 7 months ago

Have you left the state? Often they will argue that if you leave the state the statutes toll, or stop, for the period that you are gone.

Another tactic they use is to say they began collection action within the statute period, and therefore they are allowed to continue.

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