Georgia Department of Revenue

A corporation that is a member of an affiliated group is sold and becomes a member of a new affiliated group. The IRS requires the corporation to file two short period returns so that each can be included on different consolidated returns. For Georgia purposes the corporation is filing separate returns (not as part of a consolidated return). How should they file with Georgia?

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. The IRS requires the corporation that was merged to file a short period return for the period before the merger but since it is filing as a member of a consolidated group the return is not due until the 15th day of the third month following the end of the consolidated group's year end. For Georgia purposes the corporation is filing separate returns (not as part of a consolidated return). How should they file with Georgia?

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?

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

Apportionment and Allocation of Income for Corporations, Partnerships and Limited Liability Companies

What code section and regulation provide guidance in this area?

How does Georgia source gross receipts for a company which manufactures, produces, or sells tangible personal property?

How does Georgia source gross receipts where the business income is derived principally from business other than the manufacturing, production, or sale of tangible personal property?

Does Georgia recognize Internal Revenue Code Section 338(h)(10) elections by c-corporations and/or s-corporations for state income tax purposes? How would the state treat the gain/loss arising from a section 338(h)(10) election?

Net Worth Tax for Corporations

What is the tax rate for net worth tax?

What dates should I use on the corporate return under net worth tax beginning and ending dates?

How is the net worth tax determined for a short-period income tax return?

How is the net worth tax determined for an initial or final return?

How can I file the initial net worth tax return two and one half months after incorporation when the IRS has not issued my FEI #?

How are a Qualified Subchapter S Subsidiary (QSSS) and its parent treated for Georgia Net worth tax purposes?

Is a disregarded single member LLC subject to the Georgia net worth tax?

Is an LLC who files as a partnership subject to Georgia Net Worth tax?

Is an LLC who files as a corporation subject to Net Worth tax in Georgia?

How is net worth tax determined on a corporation incorporated in Georgia that does business both inside and outside the state?

The property factor for income tax apportionment and net worth tax apportionment are computed differently. What kinds of property are included in the net worth apportionment?

Does a corporation have to file a net worth return on Form 600 or 600S even if the corporate income tax portion of the return does not have to be filed?

Can a BEST credit be applied towards the net worth tax?

What is meant by "foreign" corporation?

Are homeowners associations liable for the net worth tax?

For a corporation which has a partnership interest, does the pro rata share of the partnership's receipts and assets also get added to the numerator (if applicable) and the denominator for calculating the net worth tax of the corporation as they do for the calculation of income tax?

S-Corporations

Does Georgia have its own K-1?

Who gets the benefit of tax credits earned by s-corporations?

Where do I deduct separately stated expenses (Section 179, charitable contributions, investment expenses etc.) on the s-corporation Form 600S?

If we file as an s-corporation with the IRS, how do we file with Georgia?

If a composite return is being filed on behalf of nonresident shareholders of an s-corporation, is it necessary to have the consent agreements attached to the corporate return (Form 600S)?

For income tax purposes, does Georgia follow the Federal treatment for a Qualified Subchapter S Subsidiary (QSSS)?

Does your state accept an Employee Stock Option Plan (ESOP) as a shareholder for an s-corporation?

How is an ESOP shareholder in an s-corporation taxed?

Can you carry back or carry forward a loss from a year when the corporation was not recognized as an s-corporation in Georgia to a year when it is recognized as an s-corporation in Georgia?

Partnerships

Where do I deduct separately stated expenses (Section 179, charitable contributions, investment expenses etc.) on the partnership Form 700?

How should guaranteed payments be treated on the partnership return?

Does a partnership have to pay net worth tax?

Does Georgia have its own K-1?

Who gets the benefit of tax credits earned by partnerships?

Limited Liability Companies

How is an LLC classified in Georgia?

In 1999, Tennessee expanded the type of entities that are subject to the Franchise and Excise tax. In addition to s-corporations, it now includes limited liability companies, limited partnerships, etc. A Georgia resident, who is a shareholder in an s-corporation operating in a state that does not recognize the s-election, can make an adjustment for this income on schedule 1, line 9, of Form 500 if the tax is paid by the corporation. Does this adjustment also apply to a member of a limited liability company (treated as a partnership) or a partner of a limited partnership when the limited liability company or the limited partnership pays the Tennessee Franchise and Excise tax?

Does an LLC have to pay net worth tax?

Withholding on Distributions and Composite Returns for Nonresident Shareholders, Partners, and Members of S-Corporations, Partnerships and Limited Liability Companies

What code section and regulation provide guidance in this area?

Are s-corporations, partnerships, and limited liability companies required to withhold 4% from the distributions paid or credited to its nonresident shareholders, partners, or members under Georgia Code Section 48-7-129?

How is this tax reported and paid to Georgia?

When an entity has met the withholding requirement for a nonresident shareholder, partner, or member, must the shareholder, partner, or member still file a Georgia income tax return?

Can the shareholder, partner, or member file estimated tax payments in order to relieve the entity from the responsibility of the withholding requirement?

Are distributions paid or credited to shareholders, partners, or members who are exempt organizations subject to withholding?

Are distributions paid or credited to shareholders, partners, or members who are insurance companies subject to withholding under Georgia Code Section 48-7-129?

A shareholder's, partner's, or member's distributions that were paid or credited total more than $1,000.00 per year, but its I.R.C. Section 179 deduction will make its Georgia taxable income less than this amount. Is withholding required?

Subsection (c) of Georgia Code Section 48-7-24 provides an exemption from Georgia income taxation for a nonresident member who receives income from a resident limited partnership or similar nontaxable entity which derives income exclusively from buying, selling, dealing in, and holding securities on its own behalf and not as a broker. Do the withholding requirements of Georgia Code Section 48-7-129 apply to distributions paid or credited in this situation?

Does subsection (c) of Georgia Code Section 48-7-24 apply to a family limited partnership or similar nontaxable entities?

Does Georgia allow the filing of a composite return for the nonresident shareholders, partners, or members of an s-corporation, partnership, LLC, or similar nontaxable entity?

Is it necessary to get pre approval before filing a composite return?