Patrick G. Malloy v. Frank M. O’Connell, Commissioner, Georgia Department of Revenue

Summary

Holding: The Tribunal affirmed the Department's Tax Year 2015 Official Assessment and Demand for Payment, Letter No. L1677288240, rejecting Petitioner's pro se "wages are not taxable" argument and his claim that the IRS improperly disclosed his tax information to the state.

Background: Following a hearing on June 3, 2025, Petitioner — appearing pro se — challenged a 2015 deficiency assessment based on wage income reported by his employer. Petitioner had filed a Form 4852 (substitute W-2) on his Georgia return showing "0" in wages. The Department's auditor, Elizabeth Diaz, testified that the Department obtained Petitioner's IRS Account and Wage and Income Transcripts pursuant to a written information-sharing agreement with the IRS, including a specific electronic request for Petitioner's 2015 transcripts.

Key rulings:

• Burden of proof: A Department assessment is prima facie correct, and the taxpayer bears the burden of showing clear and specific error or unreasonableness by a preponderance of the evidence (citing Blackmon v. Ross; Hawes v. LeCraw; Undercofler v. White).
• I.R.C. § 6103(d) disclosure claim: Petitioner argued the IRS unlawfully shared his transcripts with the Department. The Tribunal found this unsupported — § 6103(d) permits IRS disclosure to state tax agencies upon written request, and the Department's unrebutted testimony established such a request was made for Petitioner's 2015 transcripts.
• Taxability of wages: Compensation for services is expressly included in gross income under 26 U.S.C. § 61(a)(1) (citing Commissioner v. Glenshaw Glass Co.; Brandon v. State Revenue Comm'n), and Georgia taxable income is based on federal adjusted gross income (O.C.G.A. § 48-7-27). Petitioner's bare assertion that "wages are not taxable," without supporting evidence, failed to rebut the assessment.

Result: Petitioner failed to meet his burden of persuasion; assessment affirmed in full.