Tayo Reed v. Frank M. O’Connell, Commissioner, Georgia Department of Revenue

Holding: The Tribunal affirmed State Tax Execution No. REV 120189637 in its entirety, upholding both the Department's calculation of Petitioner's outstanding tax balance and the Department's renewal of the execution under Georgia's 2018 lien-renewal statute.

Background: Petitioner timely filed her Tax Year 2010 Georgia Form 500 individual income tax return on April 14, 2011, self-assessing a tax liability of $5,417.00 but not remitting payment. After the Department issued an Official Assessment and Demand for Payment on January 25, 2012 ($6,229.50 total), it issued State Tax Execution No. REV 120189637 on August 20, 2012, recorded on November 1, 2012 ($8,177.57 total, including a 20% collection fee and costs). The execution was re-recorded with the Fulton County Clerk of Superior Court on January 1, 2018 ($11,856.69 total). By March 25, 2025, the cumulative balance had grown to $14,951.42. Petitioner, appearing pro se, challenged the validity of the execution and moved to dismiss the tax lien, arguing the Department's calculations contained discrepancies.

Key rulings:

1. Burden of proof: Under de novo review (Ga. Comp. R. & Regs. 616-1-3-.11(a)), a Department assessment is prima facie correct, placing the burden on the taxpayer to prove error (Blackmon v. Ross; Undercofler v. White). The Department presented detailed accrual evidence (testimony of Hamilton Russ and Exhibits A–E) tracing the balance from the 2011 self-assessed return through March 2025. Petitioner offered no credible evidence of error, so the Tribunal found no discrepancies and affirmed the Department's calculations.
2. Penalty and interest accrual: Penalties accrued under O.C.G.A. § 48-7-86(a) (0.5% per month, capped at 25% of tax due) and interest accrued first under O.C.G.A. § 48-7-81 and later § 48-3-8 (both referencing the rate in § 48-2-40) once the execution issued. The Tribunal found these statutory accrual mechanics were properly applied at each stage (assessment, execution, re-recording, and through March 2025).
3. Validity of execution renewal: Under O.C.G.A. § 48-3-42(b), all Department executions were deemed invalid as of December 31, 2017, but executions recorded within the preceding seven years were eligible for renewal (for ten years) if re-filed between January 1, 2018, and February 20, 2018. Because the original execution was recorded November 1, 2012 (within the seven-year window) and re-recorded January 1, 2018 (within the renewal period), the Tribunal held the renewal complied with the statute.

Result: Tax execution and Department calculations affirmed; Petitioner's Motion to Dismiss Tax Lien denied.