TSD-3 Request for Penalty Waiver
There are two ways to request a penalty waiver for Income, Trust, and Excise Tax, online and by mail.
Online
Go to the Georgia Tax Center. Look under Tasks and click on Request a Waiver of Penalty.
To make your request, you will need the Letter ID from your assessment and a detailed reason for requesting the waiver.
By Mail
Download and complete the form.
Form
TSD-3
- Request for Penalty Waiver
More information on penalty waivers
The TSD-3 Request for Penalty Waiver form is for Income, Trust, and Excise Tax. The Department may waive penalty in whole or in part if it determines that there is reasonable cause to do so [O.C.G.A. § 48-2-43]. Reasonable cause may exist where the failure to comply with tax requirements was not a result of purposeful disregard of tax requirements. The Department will determine each penalty waiver request on its own merits, taking into account documentation provided and the taxpayer’s tax compliance history. The Department may also grant a partial penalty waiver.
The Department of Revenue assesses penalties against taxpayers for failure to comply with Georgia tax law. Examples of failure to comply include:
- Filing tax returns late
- Paying tax liabilities late
- Failing to make required estimated deposits
- Failing to file or pay electronically when required
The department has issued a
policy
statement
that provides more information regarding circumstances in which the department may waive penalty and interest.
When requesting a penalty waiver for a business, it is important to note that sales tax and withholding are trust fund taxes. This means that the money collected or withheld belongs to the state and the debtor is holding the money in trust. This money cannot be used by a business as additional operating capital or for any other purpose.