Overview
If you are a restaurant or bar owner in the State of Georgia, then you might be interested in knowing that your Georgia liquor license can be suspended for reasons beyond selling to a minor.
Unpaid state sales tax has become one of the most common problems faced by vendors of liquor in the Greater Atlanta area. However, the law has changed to make things more accommodating to business owners that are behind on their taxes.
New Policies on Tax Delinquencies
Effective September 15, 2016, the Department will no longer issue alcohol citations when a Licensee is initially discovered to be delinquent on a tax liability. Instead of issuing a first citation, the Compliance Division of the Department will seek to:
- Engage Licensees in an IPA (Installment Payment Agreement), or
- Bring the Licensee into full compliance before notifying the Alcohol Tobacco Division of a tax delinquency.
The new policy is designed to reduce the burden on both the Department and Licensees resulting from having to conduct multiple hearings while still allowing Licensees to maintain their licenses in good standing by entering into manageable payment plans under an IPA when the Licensee first fails to meet tax obligations.
How the New Policy Works
When an Alcohol Licensee first fails to meet a tax obligation, the Department’s Compliance Division will contact the Licensee and offer the opportunity to avoid an Alcohol citation by paying the delinquency.
Steps for Compliance:
- Deadline: The Licensee will be given ten (10) calendar days to file all missing returns and pay the delinquency amount in full.
- Payment Plan: If the Licensee cannot pay the full liability within ten (10) days, the taxpayer may apply for an IPA.
- Avoiding Citation: The Licensee will avoid a citation by either paying the liability in full or entering an IPA.
Consequences for Non-Compliance
- If the Licensee does not file all missing returns and pay the amount due in full or enter into an IPA by the deadline, an Alcohol citation will be issued and a hearing date will be set.
- If a Licensee enters an IPA but later defaults on the IPA, a citation will be issued and a hearing date will be set.
- Once a citation has been issued, the Licensee will have until the hearing date to pay the liability due in full, or the taxpayer’s license will be suspended or revoked at the hearing.
- A Licensee who is suspended at the hearing may be eligible for an IPA at the discretion of the Compliance Division; however, the license will remain suspended until the liability is paid in full.
Prior Law vs. Current Policy
Previously:
- Alcohol Licensees that failed to meet tax obligations were promptly issued a citation and called for a hearing.
- At or before the hearing, Licensees were given the opportunity to pay the amount in full or enter into an IPA to avoid suspension or revocation.
- Licensees who defaulted on the IPA were issued a second citation and called for a second hearing.
- At the second hearing, the Licensee risked suspension or revocation of their license.
Now (Effective September 15, 2016):
- Alcohol Licensees with past due tax obligations are no longer issued an initial citation but are contacted by the Compliance Division to resolve the tax liability.
- The Compliance Division gives the Licensee up to ten (10) days to pay the amount in full or enter into an IPA to avoid citation.
- Licensees that default on an IPA will be given a limited timeframe to cure the default before the Compliance Division declares the IPA in default.
- Once an IPA is declared in default, the Alcohol & Tobacco Division will issue a citation.
- A Licensee issued a citation for failure to comply, including defaulting on an IPA, will have until the hearing date to pay the past due amount in full or risk license suspension or revocation.
- Reinstatement is only possible after the liability is paid in full.
Frequently Asked Questions
What happens if a Georgia alcohol license holder misses a tax payment?
If a license holder misses a tax payment, the Compliance Division of the Department contacts the business before issuing a citation. The licensee is given 10 calendar days to pay in full or apply for an Installment Payment Agreement (IPA) to avoid penalties.
Can I keep my liquor license if I owe back taxes in Georgia?
Yes, under the current policy, you can keep your liquor license by either paying the owed taxes within 10 days or by entering into an IPA. This prevents an alcohol citation and avoids the risk of license suspension.
What is an IPA and how does it help with tax delinquency?
An IPA, or Installment Payment Agreement, is a structured plan that allows business owners to pay back taxes over time. It enables licensees to avoid immediate citations and maintain their liquor license while resolving tax liabilities.
What happens if I default on my IPA?
If a licensee defaults on their IPA, they will be issued an alcohol citation and scheduled for a hearing. The license may be suspended or revoked unless the debt is paid in full before or at the hearing.
How did the policy change in 2016 affect licensees?
The 2016 policy change eliminated automatic citations for first-time tax delinquencies. Instead, it introduced a grace period and payment plan option, giving licensees more time and flexibility to resolve tax issues without risking immediate license suspension.