Form It-711 - Partnership Income Tax Forms And General Instructions

GENERAL INFORMATION

FILING REQUIREMENTS

A partnership, limited liability company, syndicate, group, pool, joint

A partnership must add back all captive REIT expenses directly or

venture and unincorporated organization which is engaged in

indirectly paid to a related member. All such expense must be

business or derives income from property located in Georgia or

listed as an addition to federal income even if the taxpayer qualifies

has members domiciled in Georgia, and which is required to file a

for an exception. If a taxpayer qualifies for a full or partial exception,

Federal Income Tax return on Form 1065, is required to file a

Form IT-REIT must be completed.

Georgia Income Tax return on Form 700.

A taxpayer must addback payments of more than $600 in a taxable

year made to employees who are not authorized employees and

WHEN AND WHERE TO FILE

Form 700 must be filed on or before the 15th day of the fourth

who are not excepted by O.C.G.A.§ 48-7-21.1. An authorized employee

month following the close of the taxable year. If the due date falls

is someone legally allowed to work in the United States.

on a weekend or holiday, the return is due on the next day that is not

The total subtractions from Federal income should be shown on

a weekend or holiday. Calendar year 2013 returns are due on April

Line 11 of Schedule 7, and listed in Schedule 5. The more commonly

15, 2014. Mail the form to: Georgia Department of Revenue, P.O.

used items are listed in each schedule.

Box 740315, Atlanta, Georgia 30374-0315.

Additionally, adjustments due to other Federal tax changes should

WHEN ELECTRONIC FILING IS REQUIRED

be reported as stated on page 1.

Taxpayers that remit payments by electronic funds transfer,

U.S. obligation income must be reduced by direct and indirect

whether on a mandatory or voluntary basis, must file all associ-

interest expense. To arrive at such reduction, the total interest

ated returns electronically. Also, a nonindividual income tax re-

expense is multiplied by a fraction, the numerator of which is the

turn must be electronically filed when the federal counterpart of

taxpayer’s average adjusted basis of the U.S. obligations, and the

such return is required to be filed electronically pursuant to the

denominator of which is the average adjusted basis of all assets

Internal Revenue Code of 1986 or Internal Revenue Service regu-

of the taxpayer.

lations.

Any expense that is subject to further limitation (e.g., Section 179

Deduction, Charitable Contributions, etc.) is not deductible in

FEDERAL AUDIT

If the Internal Revenue Service has adjusted net income within the

calculating total income for Georgia purposes. However, these

last five years, a detailed statement of these adjustments must be

expenses may be deductible on the partner’s income tax return.

submitted under separate cover to: Georgia Department of

Where salaries and wages are reduced in computing Federal

Revenue, Processing Center, P.O. Box 740315, Atlanta, Georgia

taxable income because a federal jobs tax credit has been taken,

30374-0315.

which required the elimination of the salary and wages deduction,

the eliminated salary and wage deduction shall be subtracted from

AMENDED RETURNS

Georgia taxable income. Regulation 560-7-7-.05 defines the term

If a partnership becomes aware of changes it must make after filing

“federal jobs tax credit”.

its return, it should file an amended Form 700. Check the amended

Taxpayers who are parties to state contracts may subtract from

box on Form 700 and submit an amended K-1 for each partner and

Federal taxable income or Federal adjusted gross income 10% of

a complete copy of the amended Federal partnership return, including

qualified payments to minority subcontractors or $100,000,

schedules, if applicable.

whichever is less, per taxable year.

RELATION TO THE FEDERAL RETURN

A list of certified minority subcontractors will be maintained by the

The Georgia return correlates to the Federal return in most respects

Commissioner of the Department of Administrative Services for

(see information below about Federal tax changes). The accounting

the Revenue Department and general public. To register your

period and method used for the Georgia return must be the same

business as a minority subcontractor or to view the list, call 404-

as on the Federal return.

656-6315

visit

A complete copy of the Federal return and all supporting schedules

SupplierMBE.aspx

must be attached to the Georgia return. Otherwise, your return will

A partnership may subtract Federally taxable interest received on

be deemed incomplete.

Georgia municipal bonds designated as “Build America Bonds”

under Section 54AA of the Internal Revenue Code of 1986.

ADJUSTMENTS TO FEDERAL INCOME

“Recovery Zone Economic Development Bonds” under Section

(Schedules 4 and 5)

1400U-2 of the Internal Revenue Code or any other bond treated

To determine the total income for Georgia purposes, certain adjustments

as a “Qualified Bond” under Section 6431 (f) of the Internal Revenue

as provided by Georgia law are included in the computations for

Code are considered “Build America Bonds” for this purpose.

Schedules 4 and 5. The total additions to Federal Income should be

placed on Line 9 of Schedule 7, and listed in Schedule 4. Georgia does

A partnership may subtract federally taxable interest received on

not allow the Federal deduction for income attributable to domestic

Georgia municipal bonds issued by the State of Georgia and

production activities (IRC Section 199). An adjustment to the Georgia

certain authorities or agencies of the State of Georgia for which

partnership return is not required if the partnership is not allowed the

there is a special exemption under Georgia law from Georgia tax

on such interest. See Georgia Code Section 48-7-27 for additional

Section 199 deduction directly, but instead passes the information needed

to compute the deduction to the partners. A partnership must add back

adjustments.

all intangible expense and related interest expense directly or

DEFERRED COMPENSATION

indirectly paid to a related member. All such expense must be listed

A nonresident, who receives deferred compensation or income

as an addition to Federal income even if the taxpayer qualifies for an

from the exercise of stock options that were earned in Georgia in

exception. If the taxpayer qualifies for a full or partial exception, Form

a prior year is required to pay tax on the income, but only if the

IT Addback must be completed in order for the taxpayer to take a

prior year’s income exceeds the lesser of: 1) 5 percent of the

subtraction on Schedule 5 for all or any portion of the addition listed on

income received by the person in all places during the current

Schedule 4.

taxable year; or 2) $5,000. However, the income is not taxed if

federal law prohibits the state from taxing it. Federal law prohibits

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Form It-711 - Partnership Income Tax Forms And General Instructions - 2013 Page 6

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