If you have a substantial amount of sales tax owed to the State, you are probably thinking about getting on a payment plan. Payment plans are never a one-size-fits-all policy with the State as they tend to be with the IRS.
For example, the IRS will give a taxpayer a 60-month streamlined payment plan for debts under $25,000.00, regardless of how much the taxpayer earns.
Payment Plans for Sales Tax with Georgia DOR
For Open Businesses
If your business is currently open, you may get a payment plan between 12-60 months. This depends on several factors:
How many payment plans you have had in the past
The total amount due
Whether you can provide a down payment
If your business is open and you are seeking a payment plan, the State recognizes that you are likely in a mode of desperation. Therefore, they will typically aim to offer you the most aggressive payment plan possible.
For Closed Businesses
If your business is now closed, you have the most latitude and can hope for a payment plan closer to the 60-month mark.
If You Are in Revocation Status
Important: If you are in a revocation status or have a revocation hearing, a payment plan is not an option.
It is either:
Pay in full
Close your doors
How We Can Help
Our office routinely handles payment plans with the State. Call us for representation.
Frequently Asked Questions
What is the typical length of a sales tax payment plan with the Georgia DOR?
Payment plans can range from 12 to 60 months depending on your situation. Open businesses typically receive more aggressive terms, while closed businesses may have more flexibility to get the full 60 months.
Can I get a payment plan if my business is in revocation status?
No, if your business is in revocation status or facing a revocation hearing, payment plans are not available. You must either pay in full or shut down the business.
What factors influence the terms of my payment plan?
The State considers how many plans you’ve had before, how much you owe, and whether you can provide a down payment. These variables help determine the payment period and terms offered.
Are payment plans easier to get for closed businesses?
Yes, closed businesses generally have more negotiation room and can often secure longer-term plans, sometimes up to 60 months.
How can a tax professional help with my Georgia sales tax debt?
A tax professional can communicate with the Georgia DOR on your behalf, negotiate more favorable payment terms, and guide you through the process to avoid missteps or aggressive collection actions.
