Form It 611s - S Corporation Income Tax Forms And General Instructions

GENERAL INFORMATION: INCOME TAX

INTRODUCTION

state taxation of some types of retirement income including

Georgia law recognizes an election to file as an S Corporation

pensions as well as income received from nonqualified deferred

under the provisions of the I.R.C. as it existed on January 1, 2012,

compensation plans if the income is paid out over the life

qualified only in cases of nonresident shareholders who must

expectancy of the person or at least 10 years. An employer is

complete Form 600S-CA (see page 11). It also provides for the

required to withhold Georgia income tax on amounts that are

imposition of a Net Worth Tax.

required to be included in the nonresident’s income. See

FILING REQUIREMENTS

Regulation 560-7-4-.05 for more information.

All corporations that own property, do business in Georgia, or derive

income from Georgia sources are required to file a Georgia income

PV CORP PAYMENT VOUCHER

tax return.(Please round all dollar entries.)

If you owe taxes, mail your return and payment with Form PV-

HB-1151 passed in the 2008 Legislative Session changed the

CORP (See page 20). If you file electronically, mail Form PV-

annual consent filing requirement for nonresident shareholders

CORP with your payment to the address on the form. Do not use

of “S” corporations. Such nonresidents will only need to file a single

Form PV-CORP as a substitute for form IT-560C. Failure to properly

complete and mail the PV-CORP could result in delayed or

consent in the year in which the Subchapter “S” corporation is first

required to file a Georgia income tax return. For a Subchapter “S”

improper posting of your payment.

corporation in existence prior to January 1, 2008, the consent

WHEN AND WHERE TO FILE

agreement must be filed for each shareholder in the first Georgia

The return is due on or before the 15th day of the 3rd month

tax return filed for a year beginning on or after January 1, 2008. A

following the close of the taxable year. This would be March 15th

consent agreement will also need to be filed in any subsequent

if filing on a calendar-year basis. If the due date falls on a weekend

year for any additional nonresident who becomes a shareholder

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

of the Subchapter “S” corporation in that year.

weekend or a holiday. Returns should be mailed to Georgia

Georgia resident shareholders of Subchapter “S” Corporations

Department of Revenue, Processing Center, P.O. Box 740391,

may make an adjustment to Federal adjusted gross income for

Atlanta, Georgia 30374-0391.

Subchapter “S” income where the Subchapter “S” election is not

recognized for Georgia purposes or by another state. The

RELATION TO FEDERAL RETURN

adjustment is allowed in order to avoid double taxation on this type

The Georgia return relates to the Federal return in most respects

of income. Therefore, this adjustment will be allowed only for the

(see page 1 for Federal tax changes). The accounting period and

portion of income on which tax was actually paid by the corporation

method for the Georgia return must be the same as on the Federal

to Georgia or to another state(s).

return. A complete copy of the Federal return and all supporting

schedules must be attached to the Georgia return. If a Federal

audit results in a change in taxable income, the taxpayer shall file

WHEN ELECTRONIC FILING IS REQUIRED

a return reflecting the changed or corrected net income within

Taxpayers that remit payments by electronic funds transfer,

180 days of final determination. The return should be mailed to:

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

Taxpayer Services Division, P.O. Box 49432, Atlanta, Georgia

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

30359-1432.

turn must be electronically filed when the federal counterpart of

such return is required to be filed electronically pursuant to the

Internal Revenue Code of 1986 or Internal Revenue Service regu-

QUALIFIED SUBCHAPTER S SUBSIDIARY (QSSS)

lations.

For income tax purposes, Georgia follows the Federal treatment

TWO-DIMENSIONAL (2D) BARCODE FORMS

for a Qualified Subchapter S Subsidiary (QSSS). However, the

The Department of Revenue has given approval to certain software

QSSS and its parent must file separate net worth tax returns. If the

companies to produce tax programs that include a 2D barcode. A

parent is not registered with the Secretary of State, and does not

list of these companies is available on our website at

do business or own property in Georgia (other than through the

QSSS), they would not be required to file a net worth tax return.

NOTE: The Department of Revenue encourages the use of 2D

COMPUTING GEORGIA TAXABLE INCOME

barcode returns; however, we neither support nor recommend any

SCHEDULE 1

software company. Returns with a 2D barcode should be mailed

If an S Corporation is required to pay tax at the federal level, it may

to the address indicated by the software program.

be required to pay tax at the state level. Schedule 1 applies only

CORPORATE PARTNERS OF PARTNERSHIPS

to S Corporations which have converted from a C Corporation

A corporation will be considered to own property in Georgia, do

and are subject to corporate income tax due to Excess Net Passive

business in Georgia, or have income from Georgia sources

Investment Income, Capital Gains, or Built-in Capital Gains. This

whenever the corporation is a partner, whether limited or general,

income would be apportioned to Georgia by multistate S

in a partnership which owns property or does business in Georgia,

Corporations.

or has income from Georgia sources.

FREQUENTLY ASKED QUESTIONS

DEFERRED COMPENSATION

Frequently asked questions regarding S corporations,

A nonresident, who receives deferred compensation or income

corporations, partnerships, LLCs, and nonresident withholding

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

are available on our website at

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

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

income received by the person in all places during the current

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 611s - S Corporation Income Tax Forms And General Instructions - 2012 Page 6

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