The Peck Group, LCThe Peck Group, LC2026-08-06T10:59:53Zhttps://www.pecklc.com/feed/atom/WordPress/wp-content/uploads/sites/1504325/2020/03/apple-touch-icon-75x75.pngOn Behalf of The Peck Group, LC<![CDATA[Can Georgia businesses request IRS penalty abatement?]]>https://www.pecklc.com/?p=480712026-08-06T10:59:53Z2026-08-06T10:56:31ZA tax penalty can put pressure on a Georgia business, especially when an unexpected filing problem, late payment or reporting error leads to extra costs. However, you may have options if your business can show a valid reason for the issue.
The Internal Revenue Service (IRS) may allow penalty relief in some situations. The agency may look at reasons such as a reasonable cause, incorrect information or other events that affected your ability to meet tax requirements. Learning what factors the IRS may review and what records could support your request may help you decide how to address a tax penalty.
What business tax penalties may qualify for relief?
Georgia businesses may receive IRS penalties for missing required filings, unpaid taxes or incorrect tax information. Some common business tax penalties include:
Failure to file penalties for missing required tax returns or forms
Failure to pay penalties for unpaid tax amounts
Accuracy-related penalties for incorrect tax reporting
The IRS may reduce certain penalties when you can show that a reasonable situation caused the problem. For example, your business may have faced an unexpected event, relied on incorrect information or experienced another issue that made it harder to meet tax duties.
How does the IRS review penalty abatement requests?
When you request penalty abatement, the IRS may review what caused the penalty and how your business responded. The agency may look at your tax history, your efforts to fix the problem and the reason you missed a filing, payment or reporting requirement.Under Georgia law, the IRS may reduce some failure to file or failure to pay penalties when you can show that reasonable cause led to the missed requirement and that you did not intentionally ignore tax rules.Records may help explain the situation behind your request. These records could include:
Tax documents showing your filing and payment history
Event records explaining circumstances that affected your ability to meet tax duties
Action documents detailing the steps you took to correct the problem
Including these supporting materials will help us review your request as quickly and accurately as possible.
What may support a business penalty relief request?
A clear penalty abatement request may help explain what happened and why your business missed a tax requirement. Gathering records, describing the circumstances and addressing unpaid taxes may help support your request.After resolving a penalty issue, you may also review your tax processes to help prevent similar problems. Better record keeping, updated payment systems and regular reviews of filing procedures could help your business stay current with tax responsibilities.Penalty abatement does not remove the need to address unpaid tax obligations. However, qualifying businesses may request relief when penalties result from reasonable causes or other accepted circumstances.
Exploring options for business tax penalty relief
IRS penalties can affect a Georgia business’s finances and daily operations. However, some businesses may qualify for penalty relief if they can explain why they missed a tax requirement and show the steps they took to correct the issue.Reviewing the reason for the penalty, getting the right legal advice and the available relief options may help you determine the next steps for addressing your business tax concerns.]]>On Behalf of The Peck Group, LC<![CDATA[What to expect during an IRS audit]]>https://www.pecklc.com/?p=480702026-07-09T20:33:38Z2026-07-09T20:33:38ZHow the process works
The IRS first sends a letter informing you they have selected you for an audit. The letter should also specify how the audit will proceed and explain what information you should have available. Keeping records at least three years back helps ensure you have the necessary items on hand, though some situations can require older records.
The IRS occasionally conducts audits through in-person interviews, but many audits are conducted through the mail, and some are conducted in an IRS office or at your home or business.
An audit lasts until the IRS determines whether or not there are necessary changes needed regarding your taxes. The length of time this takes varies in each situation. Responding to the IRS promptly can help resolve the audit sooner and may reduce added interest and penalties if tax is assessed.
Preparing for an audit
The IRS may decide on auditing you for several reasons, and getting audited does not necessarily mean the IRS suspects you of criminal activity. As a taxpayer, you have rights including the option of seeking review through IRS Appeals (and, in some cases, court) if you disagree with the audit findings.
You can help the tax audit process go more smoothly by gathering all the necessary documents beforehand and acting courteously and professionally when communicating with the IRS. You may handle the situation on your own, or have an authorized party (such as an attorney or CPA) represent you or accompany you in meetings with the IRS. While federal law allows any qualified representative, having a Georgia-based tax attorney or CPA can be beneficial if the audit involves state-specific tax credits or local business issues.]]>On Behalf of The Peck Group, LC<![CDATA[IRS audit triggers every Georgia business owner should know]]>https://www.pecklc.com/?p=480672026-06-09T02:27:22Z2026-06-09T02:27:22ZThe IRS audits thousands of Georgia business owners each year. Knowing what draws scrutiny can help you file with confidence.
Unreported income raises immediate red flags
Every institution that pays your business reports that income to the IRS. The agency then matches those figures against your return. A gap between what was reported and what you filed can trigger at minimum a correspondence audit. Common sources business owners overlook include:
Form 1099-K payments: Transactions processed through platforms like PayPal or Square must appear on your return.
Old brokerage distributions: Accounts you rarely check still generate reportable income.
Schedule K-1 pass-through activity: Unreported pass-through income is one of the IRS's top matching targets.
Keeping a running log of all income sources throughout the year makes reconciliation far easier at filing time.
Excessive or inconsistent deductions attract scrutiny
The IRS uses industry codes to benchmark typical expense ratios by profession. If your deductions run 20% or more above the norm for your field, your return may get a second look. Business meals, vehicle use and home office claims are among the most reviewed categories.Losses are another flag. Claiming a net loss year after year can lead the IRS to question whether your operation qualifies as a legitimate business under the hobby loss rules in 26 U.S.C. § 183. A business that shows a profit in at least two out of five years generally avoids that challenge.
Georgia's mandatory federal change reporting rule
Georgia has its own audit trigger that many business owners miss entirely. UnderO.C.G.A. § 48-7-82, if the IRS modifies your federal return, you must report that change to the Georgia Department of Revenue within 180 days. Missing that deadline removes the standard statute of limitations and gives Georgia an unlimited window to assess back taxes, interest and penalties under O.C.G.A. § 48-2-49.
Next steps if you are concerned about an audit
A business tax audit can involve complex state and federal issues at the same time. An attorney experienced in tax audits can help you understand your options and respond effectively. ]]>On Behalf of The Peck Group, LC<![CDATA[How Georgia’s ‘Catastrophe Savings Accounts’ protect homeowners]]>https://www.pecklc.com/?p=480662026-05-25T17:12:32Z2026-05-25T17:12:32ZHouse Bill 511 (HB511), which the governor later signed into law.
Under this new law, residents can now establish Georgia Catastrophe Savings Accounts (CSAs) as a way to address potential future disaster-related expenses. These accounts, which are similar to health savings accounts (HSAs), allow people to set aside Georgia tax-free savings and are typically only accessible during state-declared emergencies. They offer tax benefits and financial security for Georgia residents, making them an important addition to existing tax regulations.
What can Georgia homeowners save?
A catastrophe savings account in Georgia can hold enough capital to address immediate financial needs in an emergency situation. The new law allows homeowners to save enough to cover their insurance deductibles and other costs related to a state emergency.
Those with standard homeowners insurance standard deductibles may only be able to set aside between $1,000 and $2,000 annually. Those with higher deductibles can potentially save up to twice their deductible amount or $25,000 each year, whichever amount is less.
Those who are self-insured and do not have outside policies protecting their residents can save up to $250,000 but not more than the current fair market value of the home. The amounts deposited can count as Georgia tax deductions in 2026 and later. Any state residents who own their own homes could legally create CSAs to protect against a future emergency and diminish their taxable income.
When are CSA withdrawals possible?
Tax-free withdrawals from a CSA are possible after the Georgia governor declares a state of emergency. Homeowners can use the amounts they have saved to cover qualified catastrophe expenses, including insurance deductibles, uninsured repairs and replacement expenses when a home is not safe to inhabit. Any withdrawals made for other reasons can trigger state income taxes and also possibly penalties.
Learning more about different Georgia state tax rules and tax-deferred savings programs can help homeowners minimize their tax obligations and optimize their financial protection. A lawyer who follows changes to state regulations can help homeowners set up and properly fund catastrophe savings accounts accordingly.]]>On Behalf of The Peck Group, LC<![CDATA[Behind on payroll taxes and feeling the pressure?]]>https://www.pecklc.com/?p=480652026-05-12T16:56:35Z2026-05-12T16:56:35ZEmployers are expected to take care of payroll taxes in accordance with the law. When that doesn’t happen, the employer can face serious tax issues. Payroll taxes can quickly escalate because employers must hold certain taxes in trust for the government. This includes federal income, Social Security and Medicare taxes. If they aren’t deposited on time, the Internal Revenue Service (IRS) may take action.
Facing issues regarding payroll taxes usually involves considerable pressure to get the matter taken care of. Understanding the severity of this matter is critical.
Reasons businesses fall behind
Falling behind on payroll taxes can occur for many reasons, such as cash flow problems, bookkeeping errors or missed deposit schedules. Even if the reason for the delay is unintentional, the balance owed to the IRS will continue to increase. When the missed deposits aren’t addressed, the IRS will send out notices and may scrutinize the business. It can also issue penalties, liens and levies. In many cases, the IRS will look for who to hold responsible for the unpaid taxes. This can include owners, officers, bookkeepers, managers and anyone else who has any measure of control over the finances of the company. The IRS doesn’t treat missing payroll taxes like other business debt. Instead, they may turn to the Trust Fund Recovery Penalty to recover what’s owed from the individuals held responsible.
Reducing escalation
One of the most important steps for the business to take is to find out what quarters are unpaid. Determining if returns were filed and the amount that’s owed must be a priority. IRS transcripts, payroll records, copies of filed forms and bank statements can all help to determine how to proceed. It’s critical that you don’t continue to miss deposits, even when you’re in the process of taking care of missing deposits. The IRS offers a host of options, including full payment, installment agreements and penalty relief. Determining how to get the payroll taxes current is critical, so it may be beneficial to work with someone familiar with these matters. ]]>On Behalf of The Peck Group, LC<![CDATA[Your rights during an IRS tax audit]]>https://www.pecklc.com/?p=480642026-05-12T03:47:19Z2026-05-12T03:47:19ZAn IRS audit letter can feel alarming. Knowing your rights before you respond can make a real difference in how the process unfolds.
Why your audit rights matter
The Taxpayer Bill of Rights gives every taxpayer a defined set of protections. These rights apply whether your audit is a simple correspondence exchange or a full field audit at your business. The IRS must follow them. If an agent violates your rights, you can report the misconduct to the Treasury Inspector General for Tax Administration (TIGTA).In Georgia, state-level protections add another layer. Under O.C.G.A. § 48-1-9, the Georgia Department of Revenue must conduct audits at reasonable times and explain the basis for any assessment. If you disagree with a state audit finding, you have 45 days from the notice date to file a formal protest.
Your core rights during an audit
The TBOR outlines rights that apply throughout the audit process. Here are the ones most relevant to an active audit:
Right to be informed: The IRS must explain why you are being audited and what documents it needs.
Right to representation: You may hire a tax attorney, CPA or enrolled agent to represent you at any point.
Right to record interviews: You may audio-record any interview with at least 10 days' advance notice to the IRS.
Right to appeal: You can challenge the IRS determination through the Independent Office of Appeals or in Tax Court.
Each of these rights is enforceable. You do not have to waive them under pressure.
How to respond when you receive an audit notice
Read the IRS notice in full before you take any action. The letter will specify the audit classification, the applicable tax year and the documentation the IRS intends to examine. Compile those records without delay. If an agent conducts themselves unprofessionally, you have a right under the TBOR to escalate the matter to a supervisor.A correspondence audit is generally manageable without professional representation. An office or field audit involves direct IRS contact, broader document review and a higher likelihood of additional tax assessment.
Know your options before the deadline passes
Audit deadlines are firm. Missing a response window can limit your appeal rights. A tax attorney can help you understand your options and respond before any deadline closes. Speaking with a lawyer may also clarify how these rules apply to your specific situation.]]>On Behalf of The Peck Group, LC<![CDATA[The $20,000/200 transaction Venmo and PayPal income tax rules]]>https://www.pecklc.com/?p=480632026-05-09T23:34:46Z2026-05-09T23:34:46ZWhen is PayPal and Venmo revenue reporting mandatory?
Small business owners, self-employed professionals and those with side hustles may need to report any income received through third-party payment processors once their operations reach a specific threshold. The numbers that matter are the gross transactions, not net revenue. Even fees and refunds can factor into the calculations, making tax return adjustments necessary.
Typically, credit card companies, payment processors and online marketplaces provide the 1099-K to each business or professional using their services. Even those who did not receive 1099-Ks are still responsible for reporting their income if it reaches the threshold established under the current law.
Currently, any professional who receives $20,000 or more through Venmo or PayPal in a single year must report those funds as income for their Atlanta-area business. Alternatively, anyone with 200 or more transactions in a single year is subject to the same requirements.
When an individual user’s total payments exceed $20,000 or 200 transactions in a year, the payment processors may need to withhold backup funds to ensure compliance with federal income tax requirements. The tax rate that typically applies is 24%.
Withholding rules take effect as soon as the 200 transaction or the gross revenue reaches $20,000 and continue for the rest of the calendar year. Especially in scenarios where Venmo, PayPal and other service providers fail to adhere to withholding requirements, gig workers and small business owners may need to retain a savings cushion to ensure that they can meet their federal income tax obligations when filing their annual return.
Those concerned about compliance may benefit from working with an experienced Atlanta-area tax law attorney. Having assistance when filing a federal income tax return reduces the risk of 1099-K errors that could generate costly penalties.]]>On Behalf of The Peck Group, LC<![CDATA[Haven’t filed taxes in years? How to come clean without making things worse]]>https://www.pecklc.com/?p=480622026-05-07T03:46:58Z2026-05-07T03:46:58ZFalling behind on your taxes can feel overwhelming, especially if multiple years are unfiled. Many people delay taking action out of fear—fear of penalties, audits or even criminal consequences. The reality is that waiting usually makes the situation worse. Coming clean is often the most effective path forward, but it needs to be done carefully to avoid creating new problems.
If your taxes are overdue, it’s time to take stock of where you stand. This means identifying which years are unfiled, whether any returns were filed incorrectly, and what the IRS or state already knows. Wage and income transcripts can help reconstruct missing information, especially if records are incomplete. Filing accurate returns for each overdue year is necessary. Guessing, estimating poorly or submitting incomplete filings can trigger further scrutiny.
The next steps: Getting back on track
Once your returns are prepared, you’ll need to address any balance due. Many taxpayers assume they must pay everything immediately, which can lead to panic decisions like draining retirement accounts or taking on high-interest debt. In reality, the IRS offers several resolution options. Installment agreements allow payments over time, while an offer in compromise may be available in limited circumstances where full payment is not feasible. The key is choosing an option that fits your financial situation and complies with IRS requirements.Filing before the IRS contacts you can reduce the risk of enforcement actions and may limit penalties in some cases. Ignoring notices can lead to escalating consequences such as liens, levies or wage garnishments. Responding promptly and consistently can help to keep the situation under control.There is also a strategic element to coming into compliance. Not every taxpayer needs to file every missing year, and not every balance must be addressed in the same way. A careful review of your situation with a skilled legal team can identify the most efficient path to becoming current without overpaying or exposing yourself to unnecessary risk.Addressing years of overdue taxes is not about rushing to fix everything overnight. It is about taking deliberate, informed steps that resolve the problem while protecting your financial future. With informed support and guidance, you can implement a plan that moves you toward compliance without making things worse. ]]>On Behalf of The Peck Group, LC<![CDATA[A shift from tax tribunal to tax court can impact appeals in Georgia]]>https://www.pecklc.com/?p=480602026-04-28T22:41:28Z2026-04-28T22:41:28Zends as of July 1st, 2026.
Constitutional changes in Georgia require a transition to the Georgia Tax Courts, overseen by the judicial branch of government. Those embroiled in an income tax controversy need to understand how this dramatic change could affect their pending case.
What happens to a pending appeal?
Those waiting for a hearing in front of the Georgia Tax Tribunal may need to instead attend a hearing in the Georgia Tax Court. Any cases still pending as of June 30th, 2026, automatically transfer to the Georgia Tax Court for hearings on July 1st, 2026, or later.
3 benefits of the new judicial Tax Court
The Georgia Tax Tribunal was notoriously slow. The new Tax Court has a greater capacity to move through pending cases quickly. Additionally, the impartiality of judicial professionals can lead to more appropriate determinations for individual taxpayers. Finally, the availability of a direct appeal is a valuable benefit for Georgia taxpayers.
Any appeals previously went through the Georgia Superior Courts, which was a longer and relatively costly process. Those appealing determinations made by the Georgia Tax Courts can appeal directly to the Georgia Court of Appeals.
Taxpayers need an Atlanta tax attorney before July 1st
Under the new system, the Georgia Civil Practice Act and standard court rules of evidence apply to tax disputes. Tax disputes handled through the Georgia Tax Court are similar to traditional litigation. As the rules of evidence and legal process change, taxpayers need to avoid getting tangled in the transition.
Taxpayers likely need an attorney who understands civil court proceedings, not just Georgia tax statutes. They also need a lawyer who is aware of the changes that will shortly take place. Whether the issue relates to sales and use tax or special exemptions for veterans, legal guidance and support from an attorney can lead to a better outcome.
While the courts have statewide jurisdiction, the physical location of the Georgia Tax Court and the legal hub for all cases is here in Atlanta. Those with open cases with the Georgia Tax Tribunal need assistance before the July transition occurs.
The Peck Group can provide a strategic review of the new court rules and help taxpayers prepare for the upcoming transition. Those facing Georgia state tax disputes can benefit from scheduling a consultation today before the July transition occurs.]]>On Behalf of The Peck Group, LC<![CDATA[A 5-step action plan for those who receive IRS audit letters]]>https://www.pecklc.com/?p=480562026-04-19T11:09:27Z2026-04-19T11:09:27Z1. Read the letter carefully
IRS audit letters often provide a few details about what triggered the scrutiny of a taxpayer’s history. In some cases, the IRS may have made a mistake and issued the letter to the wrong person, possibly because there are two taxpayers with the exact same name or similar Social Security numbers. Validating that everything in the letter is accurate is a key first step.
2. Conduct a self-audit
Once the IRS has asserted that there is an issue with the tax return, taxpayers can review their recent returns to see if they failed to declare income, made calculation errors or attempted to claim exemptions or credits for which they were not eligible.
3. Talk to a tax attorney
The best time to call a tax lawyer is the same day that an IRS letter arrives. People can ensure they follow the appropriate procedures and can count on the advocacy of the attorney they retain throughout the audit process. A lawyer can help people understand their rights and respond to the pending audit effectively.
4. Submit required records
The audit process typically involves providing specific financial records for the IRS to evaluate. The lawyer assisting the taxpayer can help them gather and properly submit those records to the IRS before the window to do so closes.
5. Prepare for an in-person audit, if necessary
People who must appear in person at an IRS office and business owners who may have an on-site audit conducted may need to prepare for that process by gathering records and preparing themselves emotionally for the stressful process ahead. An attorney can help those facing an in-person audit put their best foot forward by curating their appearance and helping them understand how to manage stress during the audit process.
Knowing how to handle an IRS audit can make a major difference for those who have recently received an IRS notice. The right steps can diminish the likelihood of an unfavorable outcome that could lead to collection efforts or other enforcement actions.]]>