The DOR may consider a full or partial penalty abatement if reasonable cause exists. Alternatively, the taxpayer can show the DOR failed to act in a manner that caused interest to accrue. The taxpayer needs to illustrate that the DOR’s actions caused the interest to accrue. However, generally, this only occurs if he or she determines the delay in the payment of taxes was due to the inaction or action of the DOR. GA may waive interest charges in whole or in part on any unpaid taxes. In certain situations, the Commissioner of Georgia’s Department of Revenue may waive the collection of interest charges. It can help the taxpayer avoid or lessen the impact of the penalties mentioned above and interest. Moreover, a taxpayer should make a partial payment (if they cannot pay in full). Therefore, a taxpayer should always file their tax return regardless of whether they can pay or pay in full. Interest for months before July 1st, 2016 accrues at a rate of 12% annually or 1% per month.Ĭonsequently, penalties and interest taxpayers do not file or pay when required. The annual rate equal to the Federal Reserve prime rate plus 3% until the taxpayer pays the taxes owed. The combined total of both penalties above cannot exceed 25% of the tax due on the return due date.Īdditionally, GA applies interest for each month (or part of a month) that a delinquent tax goes unpaid.

The maximum is up to a maximum of 25% of the tax due. The Late Payment penalty is 0.5% of the unpaid tax due and an additional 0.5% of the outstanding tax for each extra month. The second penalty is the Late Payment penalty. Moreover, the DOR will assess an additional 5% for each extra month the return is late, up to a maximum of 25% of the tax due. The Late Filing penalty is 5% of the tax due. The state assesses this penalty when a taxpayer does not file a tax return by the due date, including extensions.

The state will assess the Late Filing penalty.

Delinquent Georgia Tax Penalties & Penalty AbatementĬoncerning unpaid GA income taxes, Georgia state assesses two penalties that a taxpayer should know.

2016 extension form for georgia taxes