C-Corporations - FAQ

  • Does Georgia require estimated payments to be submitted electronically?

    Georgia law requires corporate estimated taxpayers with any quarterly payment of more than $10,000 to make those payments via electronic funds transfer. Additionally, you can now voluntarily participate in our electronic funds transfer program. For more information, please call 1-877-423-6711, or send an email to doreft@dor.ga.gov.

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  • What number goes in line 1 of Schedule 1 of the Georgia 600?

    Federal Taxable Income, which is generally line 30 of the Federal 1120 Form.

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  • Is it possible to have a Georgia Net Operating Loss (NOL) and not a Federal NOL?

    Yes, adjustments to Federal income could create a Georgia NOL.

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  • Is it possible to have a Federal net operating loss (NOL) and not a Georgia NOL?

    Yes, adjustments to Federal income could change the income so that there was not a Georgia NOL.

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  • A corporation that is a member of an affiliated group is sold and becomes a member of a new affiliated group. For Georgia purposes the corporation is filing separate returns (not as part of a consolidated return). How should they file with Georgia?

    The Department will accept one full year return or they can file two short period returns. If two short period returns are filed, the statutory due date for the first short period is the 15th day of the third month following the close of the short period (up to a six month extension is available but late payment penalties and interest will accrue if the tax is not paid by the statutory due date). Please note for income tax years beginning on or after January 1, 2016, the due date for the C corporation income and net worth tax return changes to the 15th day of the fourth month following the close of the short period. If the taxpayer cannot file the return in time (due to lack of information), we recommend that sufficient payments be sent so that when the return is submitted, penalty and interest charges will not apply.

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  • A corporation that is a member of an affiliated group is merged into another corporation. The new corporation is part of a different affiliated group. How should they file with Georgia?

    They should file a short year return. The statutory due date is the 15th day of the third month following the close of the short period (up to a six month extension is available, but late payment penalties and interest will accrue if the tax is not paid by the statutory due date). Please note for income tax years beginning on or after January 1, 2016, the due date for the C corporation income and net worth tax return changes to the 15th day of the fourth month following the close of the short period. If the taxpayer cannot file the return in time (due to lack of information), we recommend that sufficient payments be sent so that when the return is submitted, penalty and interest charges will not apply.

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  • Does having an employee in Georgia create NEXUS (requiring the corporation, or the shareholders in the case of an s-corporation, to pay Georgia income taxes) for a company based in another state which sells tangible personal property?

    Yes. In general having an employee in Georgia does create NEXUS. However, Public Law 86-272 provides an exemption from taxation in the following circumstances. If the employee merely solicits orders for sales of tangible personal property that are sent outside Georgia for approval and are filled and shipped via common carrier from outside Georgia (from a state other than Georgia where the employee's corporation conducts its business) then the exemption from taxation applies. It must be noted that if an employee goes beyond mere solicitation then the exemption does not apply. Additionally, the Public Law 86-272 exemption does not apply to the net worth tax, so a Form 600 or 600S must be filed with Georgia and the net worth tax must be paid. Even when the exemption applies, we recommend that the corporation complete all schedules on the Georgia return relating to income tax and attach a copy of their Federal Form 1120 or 1120S. However, on line 8, Schedule 1 of Form 600 they should enter zero and they should attach a statement that indicates their belief that they fall under the protection of Public Law 86-272. For tax years beginning on or after January 1, 2016, the box on the front page of the income tax return should also be checked. Please note also the Public Law 86-272 exemption can also apply to an S corporation, please see the IT-611S instruction booklet for more information.

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  • I file a Form 1120-H with the Federal government. What form should I file with Georgia?

    File Form 600 to report income tax information. If not organized for pecuniary gain or profit, a homeowners association is not liable for net worth tax. Write "not organized for profit" in schedule 2 of Form 600. If organized for profit, a homeowners association is liable for net worth tax.

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  • Can corporations file consolidated Georgia returns?

    Yes, but permission must be obtained from the Georgia Department of Revenue at least 75 days prior to the due date of the Georgia return (including extensions) or at least 75 days prior to the filing of the return, whichever occurs first, for the tax year for which permission to file on a consolidated basis is requested. Failure to request permission by such time will result in the denial of the application and the tax returns will be filed and processed on a separate company basis for the applicable year.

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