GA film tax credits problem

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GA film tax credits problem

Post by pivoprussia » Wed Oct 11, 2017 2:01 pm

I would appreciate any advice from anyone familiar with these credits or situation.

In 2015 I purchased 2 lots of GA film tax credits from an entertainment attorney at a very large, well-known law firm. Many CPAs have used this firm.

6 weeks ago I received a letter from GA Dept of Revenue stating I owed back taxes, interest and penalties. Upon calling DOR, they stated one of the 2 lots of films credits was missing information. She could not speak to me further about it. FYI the amount outstanding is >$50,000.

I contacted via email the attorney to inform him of the issue - on Sept 13. Over the past month I have repeatedly called GA DOR to check the status only to be told they have not received the information from the attorney required to validate the tax credits. Several emails from the attorney state they are working on it but no further details.

Further, GA is holding my tax refund of about 7k back because of this.

I'm stuck in the middle of GA DOR and the attorney/film production company. But, it is troubling that this SHOULD have been submitted 2 years ago and now is taking over a month (so far) to correct. Seems if all is well, this is a simple paperwork issue and would be quickly resolved.

I'm contemplating 1-filing a complaint with the GA Bar Association and/or 2-seeking legal representation. This would, of course, negate any benefit of the tax credits and still not lead to a quick resolution.

TIA for any useful advice.

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Re: GA film tax credits problem

Post by 123 » Wed Oct 11, 2017 4:20 pm

The easiest resolution is likely for you to "Return" the securities to the seller and for the seller to refund your payment. It would seem that the securities you received were not as they were represented if they did not perform as expected with regard to the DOR. Get your money back and move on.
The closest helping hand is at the end of your own arm.

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Re: GA film tax credits problem

Post by pivoprussia » Wed Oct 11, 2017 5:30 pm

Thanks, 123. The only issue then is the interest and penalties assessed by the DOR. I'm not gonna eat that.

I have requested paperwork to file a complaint with the GA Bar.

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Re: GA film tax credits problem

Post by LifeIsGood » Thu Oct 12, 2017 5:23 am

Keep us posted on this issue. I'm curious how it will play out.

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Re: GA film tax credits problem

Post by bottlecap » Thu Oct 12, 2017 7:07 am

I'm afraid you will need a lawyer.

You have either been defrauded or sold something that the lawyer didn't know had these issues.

I once represented a production company where the state "granted" this type of credit and later revoked it for something similar. These are rife with abuse on both the giving and receiving end. And neither side tends to paper their trail very well.

Good luck,


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Re: GA film tax credits problem

Post by pivoprussia » Fri Oct 13, 2017 4:33 pm

I found out today from the production company (not the attorney who sold the credits) that they did NOT file a tax return.

Fortunately they are on it but I'm not sure of the fall out.

What happens to the interest and penalties? And my refund?

Should I take any action?

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Re: GA film tax credits problem

Post by ERISA Stone » Fri Oct 13, 2017 4:46 pm

I would talk to an accountant that deals with the credits. I’m not well versed but I’ve bought some before. There was an extensive audit for the credits I purchased.

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tax question

Post by pivoprussia » Wed Oct 18, 2017 5:27 pm

In another post (didn't get many responses) I wrote about an issue where I purchased film tax credits to offset some of my
state tax liability. In short, the credits thus far have not been accepted by the state because the production company did not
file a tax return.

Fortunately, the production company has stepped up to admit their error and has just filed the tax return. Unfortunately the attorney
who sold those credits to me has gone radio silent. There is perhaps a possibility that he even withheld information from me.

But, the question is: once the return has been accepted and the film credits validated, will I still be charged interest and penalties or
will the state likely drop that seeing the credits are in fact valid?

Also, I am already owed a state tax refund of about 7k which the state is holding because of the issue. Should I raise an issue about this
with the production company or attorney who sold me the credits?


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Re: GA film tax credits problem

Post by LadyGeek » Wed Oct 18, 2017 8:17 pm

pivoprussia - It's best to keep all the info in one spot. I merged your post back into the first thread. This isn't a big deal, don't worry about it.
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