Georgia Tax Resolution Glossary
Clear, simple definitions of IRS tax terms relevant to Georgia residents. Each term includes a real-world example specific to Georgia taxpayers.
IRS Tax Lien
A legal claim the IRS places on your property when you fail to pay tax debt. In Georgia, this attaches to all property including real estate, vehicles, and financial assets.
Georgia Example: If you owe $15,000 in back taxes, the IRS can file a Notice of Federal Tax Lien with Georgia county courts, affecting your ability to sell property or obtain credit.
Bank Levy
The IRS seizes funds directly from your Georgia bank accounts to satisfy tax debt. The bank must hold funds for 21 days before releasing them to the IRS.
Georgia Example: A Fulton County business owner receives a levy notice; their bank freezes $25,000 to satisfy an IRS debt.
Wage Garnishment
The IRS instructs your Georgia employer to withhold a portion of your wages to pay tax debt. Unlike other creditors, the IRS does not need a court order.
Georgia Example: An Atlanta professional has 25% of each paycheck sent directly to the IRS until their $40,000 debt is paid.
Offer in Compromise (OIC)
An IRS program allowing you to settle tax debt for less than the full amount owed. Georgia residents must prove they cannot pay the full debt.
Georgia Example: A Gwinnett County resident owing $50,000 settles for $12,000 through an accepted OIC based on their financial situation.
Installment Agreement
A payment plan allowing you to pay IRS debt over time in monthly installments. Georgia taxpayers can set up plans for debts under $50,000 online.
Georgia Example: A DeKalb County family sets up a 72-month plan to pay $30,000 in back taxes at $417/month plus interest.
Currently Not Collectible (CNC)
IRS status indicating you cannot afford to pay your tax debt at this time. Collection activities pause, though interest and penalties continue.
Georgia Example: A Cobb County resident facing financial hardship gets CNC status, temporarily stopping IRS collection efforts.
Penalty Abatement
Request to have IRS penalties reduced or removed. Georgia taxpayers with clean compliance history may qualify for first-time penalty abatement.
Georgia Example: A Chatham County business with 5 years of clean filing history gets $8,000 in penalties removed.
Trust Fund Recovery Penalty
Personal liability for business owners who fail to remit payroll taxes. Common issue for Georgia small businesses.
Georgia Example: A Savannah restaurant owner becomes personally liable for $75,000 in unpaid employee withholding taxes.
Collection Due Process (CDP)
Your right to appeal IRS collection actions. Georgia taxpayers have 30 days to request a CDP hearing after receiving certain notices.
Georgia Example: An Athens business owner requests a CDP hearing to challenge an improper levy on their equipment.
Innocent Spouse Relief
Protection from tax liability caused by a spouse or former spouse's actions. Available to Georgia residents who were unaware of underreported income.
Georgia Example: A divorced Augusta resident successfully claims innocent spouse relief for taxes their ex-spouse failed to report.
Georgia Homestead Exemption
State property tax exemption that may provide some protection in IRS collection situations. Does not prevent federal tax liens but may affect forced sale calculations.
Georgia Example: A Fulton County homeowner's $100,000 homestead exemption is considered when the IRS evaluates collection options.
Subordination
IRS agrees to make their tax lien secondary to another creditor, allowing you to refinance property. Useful for Georgia homeowners needing to access equity.
Georgia Example: A Cobb County homeowner gets lien subordination allowing them to refinance and use proceeds to pay tax debt.
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