The Peck Group, LCThe Peck Group, LC2026-10-02T13:27:13Zhttps://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[When does a Georgia tax mistake become a tax controversy?]]>https://www.pecklc.com/?p=480842026-10-02T13:27:13Z2026-10-02T13:27:13ZA mistake on a Georgia tax return may start as a simple filing issue. However, the situation can become more serious when the Georgia Department of Revenue (DOR) changes a return or says that more tax is due. At that point, deadlines and formal dispute rules can turn a tax problem into a tax controversy.
What does the DOR notice mean?
The first step is to identify the type of notice. For example, the DOR may send a Notice of Return Changes after it changes information on a filed return. It may also send a Notice of Proposed Assessment after an audit or another review.A proposed assessment explains the tax at issue, the filing period, the amount due and why the DOR believes the taxpayer owes it. A taxpayer who disagrees should not assume that calling the DOR will protect the right to challenge the amount.Instead, Georgia allows taxpayers to follow a formalprotest and appeal process. A taxpayer generally has 45 days from the issue date of a proposed assessment to file a protest. The protest should explain why the amount is wrong and include documents that support that position.
What happens if the dispute continues?
After receiving a protest, the DOR may ask for more information. If the taxpayer requested a conference, a department representative may also discuss the dispute with them. The DOR can then grant the protest, deny it or make adjustments.If the taxpayer and the DOR cannot resolve the dispute, the DOR may formally assess the amount it believes the taxpayer owes. This step raises the stakes because the taxpayer generally has another 45 days to appeal.Since July 1, 2026, taxpayers may bring certain state tax disputes before the Georgia Tax Court, which operates separately from the DOR. Depending on the case, a taxpayer may also appeal in the appropriate superior court.Missing these deadlines can create larger problems. The DOR may eventually issue a state tax execution, also called a tax lien. Collection efforts may then affect wages, bank accounts or property.
How can early guidance help?
Tax controversies often involve more than correcting a number on a return. Records, deadlines and the reasons behind the DOR's position can all shape the outcome.An attorney can review the notice and explain the available options before an important deadline passes. Legal guidance may become especially useful when an assessment involves a large balance, a business tax issue or a possible appeal.]]>On Behalf of The Peck Group, LC<![CDATA[Georgia’s tax rate drops to 4.99%: How to avoid penalties]]>https://www.pecklc.com/?p=480752026-09-17T07:06:28Z2026-09-17T07:06:28ZThe retroactive ripple effect
Many payroll systems started 2026 using the old withholding rate, causing timing issues when the new tax rate under HB 463 began. As a result, some taxpayers may have too little or too much tax withheld during the year, including cases of Georgia 4.99 tax rate underwithholding.
Mid-year changes are especially tricky because if payroll withholding is not updated correctly, the total withheld may not match the final 4.99% tax owed. For individuals, this could mean a smaller refund than expected or an unexpected tax bill when filing. Even a small timing change can noticeably affect the year-end result.
Corporate responsibilities and compliance
Businesses should update their payroll systems quickly so the software applies the 4.99% rate as soon as it takes effect. This helps make sure withholding is correct from the beginning. It also supports compliance and helps prevent underpayment and potential Georgia state tax penalties.
While Georgia may allow some transition-year leniency, proactive updates are still the safest approach. It is also critical for human resources (HR) departments to inform employees about the change to prevent confusion over fluctuating take-home pay.
Actionable steps for taxpayers
Reviewing the Form G-4 and doing a mid-year checkup can help employees in Georgia ensure their tax situation aligns with the 4.99% rate. Georgians with freelance, investment or other non-wage income can also adjust their estimated payments to avoid underpayment.
Helping you avoid costly surprises
Staying ahead of the 4.99% transition in Georgia can help ensure that you keep more of your money without facing a penalty-driven setback in April the following year. A tax attorney can help you create a withholding strategy that addresses concerns stemming from the Georgia HB 463 tax rate change.]]>On Behalf of The Peck Group, LC<![CDATA[Is your small business accidentally asking for an IRS audit?]]>https://www.pecklc.com/?p=480732026-09-04T10:56:46Z2026-09-04T10:56:46ZMismatched income reports raise red flags
The IRS and state tax authorities use smart computer systems to check every dollar you report. If your tax return says you earned $75,000 but your bank forms show $90,000, the system catches this error immediately. These programs compare your numbers with data from banks and clients. Even honest mistakes make auditors suspicious. Therefore, you should check all your income documents carefully before you file your taxes.
Large business deductions attract attention
You can legally deduct costs for travel, meals and home offices. However, the IRS checks if these costs make sense for your income level. For example, claiming $30,000 in travel when your business only made $60,000 looks suspicious. Similarly, claiming 80% of your home for a consulting business also seems excessive. Instead, you should keep your expenses reasonable and save every receipt to prove your spending.
Labeling workers incorrectly creates risks
Many businesses struggle with how they categorize their workers. Some owners call employees "independent contractors" to save money on payroll taxes and benefits. However, the IRS and Georgia Department of Labor use strict rules to decide a worker's true status. Watch out for these warning signs:
You control when, where and how the person works.
The worker uses your tools and only works for your company.
You train the worker and make them a permanent part of your team.
The relationship lasts a long time rather than ending after one project.
Mistakes in this area lead to expensive fines and back taxes.
Reporting losses every year makes the IRS suspicious
The IRS expects a real business to make a profit eventually. If your company fails to show a profit in at least three out of five consecutive years, auditors may question whether your business is just a hobby. This "hobby loss rule" stops people from using personal interests to lower their taxes. Consequently, you must show that you are trying to make money by using business plans and marketing.
Take action before the IRS contacts you
Does your business show any of these red flags? If so, you can fix these problems now with better records and honest reporting. If you receive a notice from the IRS or Georgia Department of Revenue, respond quickly with organized paperwork. Finally, seeking help from legal counsel can protect your business and give you peace of mind.]]>On 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.]]>