Plain-English definitions of the Georgia legal terms our clients actually ask about. Statute references included where they matter. Cross-linked to deeper content on the site.
Georgia's combined living-will and durable healthcare power of attorney form, codified at O.C.G.A. § 31-32-4. Lets a person designate an agent for healthcare decisions if they become incapacitated and specify wishes for end-of-life care. Replaces the older "living will" form. Every Georgia adult should have one in place.
A formal written notice required before suing a Georgia state, county, or municipal government. Deadlines are short — six months for municipalities under O.C.G.A. § 36-33-5, twelve months for the State of Georgia under the Georgia Tort Claims Act. Missing the deadline usually means losing the right to sue, even when the underlying case would have been worth pursuing.
Georgia's rule under O.C.G.A. § 51-12-33 that requires a jury to assign each defendant a separate percentage of fault when multiple parties are responsible. Joint and several liability is largely abolished — each defendant pays only their share, even if a co-defendant cannot pay.
IRS unit that matches third-party information returns (W-2, 1099, K-1) against filed individual returns and issues notices when income is underreported. The CP2000 letter is the most common AUR-generated notice. Most CP2000 issues can be resolved by responding with documentation; ignoring them turns into a Notice of Deficiency in 90 days.
An insurance company's refusal to pay a covered claim without reasonable grounds. Georgia's bad-faith statute, O.C.G.A. § 33-4-6, allows recovery of an additional 50% of the loss plus attorney fees when bad faith is established and a proper 60-day demand letter has been sent.
A formal IRS hearing the taxpayer can request after receiving a Notice of Federal Tax Lien filing or a Final Notice of Intent to Levy. Filed on Form 12153 within 30 days of the notice. Stops collection action while the hearing is pending and provides a path to Tax Court review of the Settlement Officer's determination.
IRS status applied when collection of a tax debt would create financial hardship. Pauses active collection but does not eliminate the debt; interest continues to accrue. The IRS reviews CNC status periodically. CNC can be a stopgap while preparing an Offer in Compromise or until a taxpayer's financial situation changes.
Tax doctrine from a 1930 case allowing the IRS or a court to estimate deductions when the taxpayer can prove some expense was incurred but lacks contemporaneous records. Limited in scope, often disallowed by Treasury Regulations for specific categories like travel and meals (IRC § 274(d)).
Georgia rule that prevents the defense from arguing the plaintiff has been 'made whole' by other benefits — health insurance, disability, workers' comp. The plaintiff is entitled to full damages from the at-fault party regardless of what other sources have paid. Subrogation rights of those payers are handled separately at settlement.
Georgia's rule under O.C.G.A. § 51-12-33: the plaintiff's recovery is reduced by their percentage of fault, and if the plaintiff is 50% or more at fault, they recover nothing. The rule shapes how every personal injury case is investigated and negotiated.
A fee structure where the attorney is paid a percentage of the recovery, with no fee if there is no recovery. Standard in personal injury practice. The percentage is set in writing at the start of representation; in Georgia, typical pre-suit contingency is one-third, with a higher percentage if suit is filed.
Two categories of compensatory damages. Special damages are amounts you can put a number on — past medical bills, lost wages, property damage, future medical care. General damages are harder to quantify — pain and suffering, loss of enjoyment of life, loss of consortium. Insurance companies underweight general damages because there is no receipt to argue about.
A formal pre-suit letter from a plaintiff's attorney to the at-fault party (or their insurer) stating the facts of the claim, the damages, and a settlement amount. In Georgia, the demand letter often triggers the bad-faith demand procedure under O.C.G.A. § 33-4-6 and starts the 60-day clock for the insurer to respond.
Sworn out-of-court testimony recorded for use in litigation. The witness answers questions from opposing counsel under oath, with a court reporter transcribing. Depositions are used to lock down testimony, develop evidence, and assess how a witness will perform at trial. Most Georgia personal injury cases that go to suit involve at least one deposition of the plaintiff and one of the at-fault driver.
Georgia's dram shop statute (O.C.G.A. § 51-1-40) makes commercial servers of alcohol liable for injuries caused by an obviously intoxicated patron in narrow circumstances — typically when the server knew the patron would soon be driving. Dram shop claims supplement, but do not replace, the claim against the intoxicated driver.
Common-law rule that the defendant takes the plaintiff as found — including pre-existing conditions or unusual vulnerabilities. The defendant is liable for the full extent of the harm caused, even if a healthier person would have suffered less injury from the same negligent act.
The written contract between attorney and client that defines the scope of representation, fee structure, costs, and termination terms. Required by the Georgia Rules of Professional Conduct for contingency-fee matters. The engagement agreement is signed at the start of representation; nothing is final until both parties sign.
A statutory lien on a taxpayer's property arising automatically upon assessment of a tax debt under IRC § 6321. The IRS perfects priority by filing a Notice of Federal Tax Lien (NFTL) in public records. Affects credit, real estate transactions, and asset sales. Can be released, withdrawn, subordinated, or discharged through specific procedures.
The IRS form a corporation or LLC files to elect to be taxed as an S-Corporation. Generally must be filed within 2 months and 15 days after the start of the tax year the election is to take effect, though late-election relief is sometimes available under Rev. Proc. 2013-30.
The IRS form authorizing a tax practitioner to represent a taxpayer before the IRS. Filing it directs the IRS to communicate with the representative rather than the taxpayer for the specified tax years and forms.
The IRS form used to request relief from joint-return tax liability under IRC § 6015. Three pathways: traditional innocent spouse, separation of liability, and equitable relief. The IRS notifies the other spouse and gives them an opportunity to participate.
Georgia's measure of damages in wrongful death cases under O.C.G.A. § 51-4-1 — the full value of the decedent's life from the decedent's own perspective, including both economic value (lost earnings, services, benefits) and intangible value, without deducting personal expenses. One of the broader damages standards in American law.
An out-of-court statement offered to prove the truth of the matter asserted. Generally inadmissible at trial in Georgia (O.C.G.A. § 24-8-802) but with significant exceptions — present sense impressions, excited utterances, business records, statements against interest, and dying declarations among them. Whether evidence is hearsay shapes what proof a case can use at trial.
A medical examination of the plaintiff conducted by a doctor selected and paid for by the defense in personal injury litigation. The "independent" label is misleading; the IME doctor typically reaches conclusions favorable to the defense. Cross-examining IME doctors is part of trial preparation. IMEs are routine in any case where injuries and treatment costs are contested.
An IRS-approved monthly payment plan for outstanding tax debt. Several types exist: guaranteed (under $10K), streamlined (under $50K), and standard (over $50K, requires financial disclosure). Installment Agreements stop active collection and prevent levies but do not stop interest or penalty accrual. Application is made on Form 9465.
Written questions one party serves on another in litigation, to be answered under oath in writing. Georgia limits interrogatories to 50 per party (O.C.G.A. § 9-11-33), including subparts. Used to develop facts, narrow issues, and build the foundation for depositions. Answers are typically due within 30 days.
How property is distributed when someone dies without a valid will. Georgia's intestate statutes (O.C.G.A. § 53-2-1) specify a hierarchy: spouse and children first, then parents, then siblings, then more distant relatives. The result rarely matches what most people would have wanted; a properly executed will overrides the default rules.
A specially designated escrow account that attorneys use to hold client funds — settlement proceeds, retainer deposits — separately from the firm's operating account. Required by Georgia bar rules. Settlement checks pass through IOLTA before disbursement to the client.
Internal Revenue Code section excluding from federal gross income the amount of any damages received on account of personal physical injuries or physical sickness. Excludes punitive damages and interest. The basis for the general rule that personal injury settlements are tax-free.
Internal Revenue Code section providing three forms of relief from joint-return tax liability. Subsection (b) is traditional innocent spouse relief; (c) is separation of liability for divorced or separated spouses; (f) is equitable relief for cases that do not fit (b) or (c).
Internal Revenue Code section that pierces corporate liability protection by making individuals personally liable for unpaid employment taxes. The IRS imposes the penalty on persons determined to be "responsible" for collecting and remitting the trust-fund portion of payroll taxes who "willfully" failed to do so.
IRS letter proposing the Trust Fund Recovery Penalty against an individual under IRC § 6672. Triggers a 60-day window to request a Conference of Right or to file Form 4180 contesting responsible-person or willfulness elements. Ignoring Letter 1153 is one of the most common and most expensive mistakes in employment-tax controversy.
IRS seizure of property or rights to property to satisfy a tax debt under IRC § 6331. Common targets: bank accounts (one-time levy), wages (continuous), and accounts receivable. Requires prior issuance of a Final Notice of Intent to Levy (Letter 1058 / LT11). Stopped by timely CDP request, payment, or installment agreement.
Insurance that pays third parties for harm caused by the policyholder's negligence. Auto liability is mandatory in Georgia (O.C.G.A. § 33-7-11) at 25/50/25 minimum limits. Liability coverage is what funds most personal injury settlements. Inadequate limits are why uninsured/underinsured motorist coverage (UM/UIM) matters so much for the injured party.
A claim asserted by a hospital against an injury settlement under O.C.G.A. § 44-14-470 et seq. for medical care rendered to the injured patient. The lien must be perfected through specific filing requirements; defects in perfection can void the lien or limit its enforceability.
A non-binding settlement conference led by a neutral third party (often a retired judge) who shuttles between the parties to find a settlement amount. Most Georgia personal injury cases that settle do so at or shortly after mediation. Either party can walk away; preparation determines outcomes.
The point at which a patient's medical condition has plateaued and is unlikely to improve further with additional treatment. MMI matters in personal injury cases because it is generally inadvisable to settle before reaching it — settling pre-MMI risks closing out the claim before the full extent of future medical care is known.
A pretrial motion asking the court to decide a case (or part of it) without a trial because no genuine dispute of material fact exists. Governed in Georgia by O.C.G.A. § 9-11-56. Granted, summary judgment ends the case in favor of the moving party; denied, the case proceeds to trial on the disputed issues.
A pretrial motion to exclude (or admit) specific evidence at trial. Common subjects: prior bad acts, settlement discussions, irrelevant medical history, prejudicial photos. Decided by the trial judge before the jury hears the disputed evidence; can be the difference between winning and losing in a close case.
IRS letter (also called the "90-day letter") issued under IRC § 6212 proposing additional tax owed. Recipients have 90 days to file a Tax Court petition under IRC § 6213 — a hard statutory deadline. Missing it forfeits the right to challenge the assessment in Tax Court.
An IRS settlement that resolves a tax debt for less than the full amount owed. Three grounds: doubt as to collectibility, doubt as to liability, or effective tax administration. The IRS rejects most OIC submissions because they are not properly prepared; well-documented offers with realistic financial analysis succeed at meaningfully higher rates.
The internal governance document of a Georgia LLC, establishing ownership percentages, member rights, distribution rules, decision-making procedures, and dissolution terms. Not required to be filed publicly but strongly advisable for every LLC, including single-member entities. Without one, Georgia's default LLC rules apply, and they may not match the members' intent.
Optional auto-insurance coverage that pays medical expenses and lost wages for the policyholder regardless of fault. Georgia is not a no-fault state and PIP is uncommon here; instead, drivers carry MedPay coverage in similar amounts. Knowing whether a policy includes PIP, MedPay, or neither shapes early case strategy.
A property owner's legal responsibility for injuries that occur on their property due to a dangerous condition. In Georgia, the duty owed depends on the visitor's legal status (invitee, licensee, or trespasser) under O.C.G.A. § 51-3-1 and § 51-3-2. Slip-and-fall, inadequate security, and structural-defect cases are the most common premises-liability claims.
The court-supervised process of administering a deceased person's estate — proving the will, collecting assets, paying debts, and distributing what remains. In Georgia, probate is handled by the Probate Court of the county where the decedent lived. A simple Georgia probate runs 6 to 12 months. Properly funded living trusts can avoid probate for most assets.
Damages intended to punish defendants for willful, malicious, or reckless conduct, separate from compensating the plaintiff. In Georgia, punitive damages require clear and convincing evidence (O.C.G.A. § 51-12-5.1), are capped at $250,000 in most cases, and are uncapped in product-liability and DUI matters. Punitive damages are taxable as income to the plaintiff (IRC § 104(a)(2) does not exclude them).
IRS-required wage that an S-Corporation owner-employee must pay themselves through W-2 payroll, reflecting what an arm's-length employer would pay for the same services. Setting compensation too low to maximize the FICA-free K-1 distribution is one of the most common S-Corp audit triggers.
The legal doctrine that protects state and local governments from being sued without their consent. Georgia waives sovereign immunity in limited categories under the Georgia Tort Claims Act (O.C.G.A. § 50-21-20 et seq.) and similar municipal statutes — but the waiver is narrow, the dollar limits are low, and the ante-litem notice deadlines are short. Suing a government entity requires careful procedural compliance.
Schema.org markup that identifies passages of a page as suitable for text-to-speech reading by AI voice assistants like Google Assistant. Used to optimize content for voice search and AI search citation.
A trust designed to hold assets for a beneficiary with disabilities without disqualifying them from means-tested government benefits (Medicaid, SSI). Used both for inheritances and for personal-injury settlements involving an injured person who relies on public benefits. Funded properly, special needs trusts preserve both private resources and public benefits.
Under O.C.G.A. § 51-4-2, the right to bring a Georgia wrongful death claim follows a strict order: surviving spouse, then children if no spouse, then parents if neither. Getting standing right at the start avoids months of unnecessary fighting later.
In Georgia, generally two years from the date of injury for most negligence-based personal injury claims under O.C.G.A. § 9-3-33. Government claims have shorter ante-litem notice deadlines that can be missed in months.
IRS letter (also called the "90-day letter") proposing additional tax liability and giving the taxpayer 90 days to file a petition with the U.S. Tax Court. Filing a Tax Court petition stops IRS assessment; missing the 90-day deadline forfeits the Tax Court option and the taxpayer is left with refund-suit procedures, which require paying the disputed tax first.
A right held by a party who has paid for an injured person's losses to recover those amounts from the party who caused the injury. Health insurers, workers' comp carriers, and disability carriers commonly assert subrogation rights against PI settlements. ERISA-governed plans assert the strongest subrogation claims.
The right of a party that has paid for a loss (typically a health insurer or workers' comp carrier) to recover those payments out of any third-party liability settlement the injured party receives. Georgia statutes and ERISA federal law govern when and how subrogation applies. Resolving subrogation correctly often determines what the client actually receives at the end of a case.
Federal court that hears tax disputes before the taxpayer pays the proposed assessment. Has small-case procedures for disputes under $50,000 per year that allow self-representation with relaxed rules. Tax Court rulings can be appealed to the relevant U.S. Court of Appeals.
IRC § 6672 penalty equal to 100% of the trust-fund portion of unpaid employment taxes — federal income withholding plus the employee share of FICA — imposed personally on responsible persons who willfully failed to remit. One of the most aggressive collection tools the IRS uses against small-business owners.
Georgia auto insurance coverage that pays the policyholder when an at-fault driver has no insurance or insufficient insurance to cover the full damages. Two stacking models exist in Georgia (added-on and reduced-by); the choice affects how UM/UIM coverage interacts with the at-fault driver's policy.
Definitions are general explanations of common legal concepts and are not legal advice. For advice tailored to your situation, the consultation is free.
One call. No fee unless we recover. Atlanta and the entire metro perimeter.
FREE CONSULTATION(404) 436-2411Atlanta · Georgia-licensed attorneys