Georgia businesses face dual IRS and state tax enforcement risks

Business owners in Georgia, specifically in areas like Chatham County, face dual risks from both the Internal Revenue Service (IRS) and the Georgia Department of Revenue regarding tax debt. Because Georgia maintains a state income tax, these two agencies operate independently; resolving federal debt does not prevent state-level enforcement actions.

A critical risk for business leaders is the mismanagement of trust-fund taxes, which include collected sales tax and withheld payroll taxes. Unlike other business liabilities, the IRS can use the Trust Fund Recovery Penalty to pursue owners and officers personally, bypassing the legal protections of the business entity.

State enforcement by the Georgia Department of Revenue can escalate through several methods, including filing state tax executions (liens), garnishing wages, levying bank accounts, seizing property, and offsetting refunds.