Business Tax Audits
The Department reviews tax returns and credits, deductions, etc. claimed to determine if the correct amounts were reported. We may request more information or receipts to clarify or support items or positions claimed on a return(s) by conducting an audit.
Audits for Business Taxes generally cover the following:
- Sales and Use Tax
- Corporate Income Tax/Net Worth Tax
- Partnerships/LLCs/S-Corporations/Non-Resident Withholding
- Withholding Tax
- International Fuel Tax Agreement Tax (“IFTA”) / International Registration Plan (“IRP”)
- Motor Fuel Tax
What should I expect if I am audited by the Department?
- Once a taxpayer is selected for audit, an auditor will contact the taxpayer to notify them of the audit and will generally send a letter notifying the taxpayer that the taxpayer's tax returns have been selected for examination. The auditor will work with the taxpayer to set up the date and time of the first meeting with the auditor. At this meeting, the auditor will want to discuss the nature of the business or employment, the accounting or record keeping system used, and other related matters. If the records are assembled in a neat and orderly manner before this meeting, any unclear items may be resolved with the least amount of time and effort.
- The auditor(s) will perform an examination of the tax returns and the taxpayer's books and records to determine if the correct amounts were reported on the tax returns. If possible, the audit will be conducted at the taxpayer's place of business, although it may also be conducted at the taxpayer's representative's office (i.e., accountant, attorney, etc.) or the Department's offices.
- Upon completion of the examination, the Department may determine that adjustments should be made which result in an amount due or a refund. The auditor generally discusses the proposed audit report in a final conference and a copy of the work papers/adjustments proposed is given to the taxpayer and/or the taxpayer's representative at that time. You may have an attorney, accountant or other person represent you or attend any meetings connected to our audit. To do so, you must provide a completed Power of Attorney form.
- The Department will notify the taxpayer by mail of the results of the audit. If there are adjustments, the taxpayer will receive an assessment or refund notice. If there is no tax due and no refund, a letter will be sent explaining that there is no change in the tax liability. If you have questions or need more information, please contact the auditor who worked with you, or the Department, at the address and phone number listed on the audit report.
If it is determined that an additional amount is due, you may pay what you owe without additional penalties and interest being added using the Georgia Tax Center portal.
If you disagree with the proposed adjustments as reflected on a Notice of Proposed Assessment whether the adjustments proposed result in a net liability or net refund, you may file a protest.
If you received an Official Notice and Demand for Payment, you may file a petition with the Georgia Tax Tribunal.
Under Georgia Law, as a Georgia taxpayer, you have the right to expect the Department to honor its mission and to uphold your rights every time you contact or are contacted by DOR. This includes fair and courteous treatment in all dealings with DOR, prompt and accurate responses to all questions and requests for tax assistance, and a fair and timely hearing on a dispute of any tax liability, as provided by law. Learn more about the Georgia Taxpayer Bill of Rights.
If you have a question about a Business Tax Audit, you may contact the Department at 404-417-6400. For Corporate Income Tax Audit inquiries, you may contact the Department at 404-417-6391.