General Business Tax Questions - FAQ
I haven’t filed my tax returns for several years and am interested in Georgia's Voluntary Disclosure Agreement Program. What do I do?
If you have not been contacted by the Department yet, you may qualify for our Voluntary Disclosure Agreement program, which provides incentives including waiver of penalties and may limit filing requirements for previous periods. For additional information, see https://dor.georgia.gov/voluntary-disclosure-agreements
I want to settle my tax debt through the Voluntary Disclosure Agreement program but have limited funds; do I have to pay the total amount now?
While full payment is generally required within 90 days to participate in the Voluntary Disclosure Agreement (VDA) program, other payment options are available. If you are unable to make payment in full, include the amount you are able to pay per month when submitting your VDA application and we will advise you if we can accept those terms.
Will Georgia follow IRS Notice number 2004-54 relating to paid preparer signatures?
Yes. Using the IRS requirements, Georgia will permit paid preparers to sign original returns, amended returns, or requests for filing extensions by rubber stamp, mechanical device (such as signature pen), or computer software program. Also refer to Regulation 560-3-2-.27 “Signature requirements for tax returns.”
What is the due date for corporate returns?
The corporate income tax return is due on or before the 15th day of the 3rd month following the close of the taxable year. The corporate net worth tax return must be filed on or before the fifteenth day of the third month following the beginning of the corporation's taxable period. Both the income tax and net worth tax are reported on the same form, Form 600 or 600S. 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. S corporation returns remain on the 15th day of the third month.
What is the due date for the partnership return?
The partnership return is due on or before the 15th day of the 4th month following the close of the taxable year. For tax years beginning on or after January 1, 2016, the due date for the partnership return changes to the 15th day of the third month.
Who must file a Georgia income tax return?
Every corporation, partnership, and LLC which does business or owns property in Georgia or receives income from Georgia sources must file a Georgia income tax return. Additionally, every partnership or LLC being treated as a partnership, which has partners or members which are domiciled in Georgia, must file a Georgia income tax return.
What are the reporting requirements as the result of an IRS audit?
When there is an IRS change, the taxpayer has 180 days to report the change to the Department of Revenue and the taxpayer must claim a refund by filing an amended return within one year of submitting the change. Please note most taxpayers just include the amended return when they report the change within the 180 day period. A complete copy of the Federal change must be included with the amended return when it is filed. If the taxpayer fails to notify the Department of the change, the Department has five years from the date the report is received from the IRS to issue an assessment. A taxpayer who fails to notify the Commissioner within 180 days forfeits any Georgia refund as a result of the audit if the normal statute of limitations has passed. However, for tax years beginning on or after January 1, 1987, 90% of any overpayment can be applied to a balance due for another year that is a result of the same IRS audit.
If a company has to file a short period Federal income tax form, does it have to file a short period Georgia income tax return?
Yes. However, please see the exception for mergers and acquisitions in the C-Corporations section.
What U.S. Government interest is deductible from Federal income?
Interest from Direct Federal Obligations (such as Treasury Bonds & Notes) and other interest that is specifically exempt by Federal statute are not taxed by Georgia (including dividends received from mutual funds that derive income from these sources). Any amount exempted must be reduced by any direct and indirect interest expense attributable to the production of the interest or dividend income. To arrive at such reduction, the total interest expense is multiplied by a fraction, the numerator of which is the taxpayer's average adjusted basis of U.S. obligations, and the denominator of which is the average adjusted basis of all assets of the taxpayer. The interest cannot be from third party obligations such as Federal National Mortgage Association (F.N.M.A.), Government National Mortgage Association (G.N.M.A.), etc.
What municipal interest has to be added to Federal income?
Interest received from non-Georgia municipal bonds and dividends received from mutual funds that derive income from non-Georgia municipal bonds must be added to Federal income if it is not already included.
What types of taxes have to be added to Federal income?
Any taxes on, or measured by, net income or net profits paid or accrued within the taxable year imposed by the authority of the United States or any foreign country, and by any state (except the state of Georgia) or by any territory, county, school district, municipality, or other tax subdivision of any state, territory, or foreign country to the extent such taxes are deducted in determining Federal taxable income. These are taxes based upon income.
Has Georgia adopted the Uniform Division of Income for Tax Purposes Act (UDITPA)?
No, Georgia has not specifically adopted UDITPA.
Does Georgia follow the Multi-state Tax Commission (MTC) regulations and policies?
No. Georgia is only a sovereignty member.