Georgia State Income Tax Laws
The Georgia Department of Revenue is responsible for collecting income taxes in Georgia. In Georgia, residents who file federal taxes must also file state income taxes. State taxes are due the same time as federal taxes. As of February 2011, taxpayers who file taxes after the filing date incur a 5 percent penalty every month, limited to 25 percent.
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Tax Refund Statutes
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Taxpayers in Georgia have three years to claim tax refunds from the date the taxes were due, paid or from the date taxes were due after the Department of Revenue provided an extension of time. Georgia law allows taxpayers to have three years from the later of these dates to take advantage of filing a claim for a tax refund.
Tax Assessment Statutes
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The Department of Revenue has three years to assess tax liabilities in most cases. However, under Georgia law, exceptions exist if the taxpayer files a claim for a refund. In this case, the Department of Revenue has six additional months to collect taxes. For taxpayers who failed to report at least one-quarter of their gross income, the Department of Revenue has six years to collect the underpayment. When taxpayers fail to file their tax returns or fraudulently file tax returns, the Department of Revenue does not have a statute of limitations deadline to pursue an assessment.
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Innocent Spouse Laws
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The Internal Revenue Service allows divorced taxpayers who filed tax returns jointly with their ex-spouses a release from federal tax liabilities for underreporting taxes. Under the Innocent Spouse Relief Act, taxpayers may obtain relief from tax liability if the taxpayer had no actual knowledge of the underreporting. Similarly, the Georgia Department of Revenue allows residents innocent spouse relief by submitting an Injured Spouse Relief Form. The Georgia state legislature passed innocent spouse laws in 1999, allowing spouses a release from joint and several liability tax responsibilities. If the taxpayer qualifies for innocent spouse relief under the federal tax laws, then the taxpayer can claim innocent spouse injury under the state laws.
Penalties
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The Department of Revenue can assess penalties on taxes filed after the deadline and underreported taxes. Under Georgia law, as of February 2011, the Department of Revenue can assess a $1,000 penalty against the taxpayer who filed frivolous returns. Taxpayers who file frivolous returns file tax returns with erroneous information with the intent to evade or interfere with the state's tax code. For taxpayers who underpay taxes fraudulently, Georgia law allows the Department of Revenue to assess a 50 percent penalty on the underpaid tax amount. Although the federal government does not impose a late penalty against taxpayers who pay at least 90 percent of their tax bill for tax payments covered through extension of time requests, Georgia law does not allow a similar exception. However, Georgia law allows taxpayers to request a waiver from a penalty in special situations.
Considerations
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Since tax laws can frequently change, you should not use this information as a substitute for legal or tax advice. Seek advice through a certified accountant or tax attorney licensed to practice law in your jurisdiction.
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References
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