(1)Interest at the rate provided in O.C.G.A.
§
48-2-40 and referred to in
O.C.G.A. §§
48-7-81 and
48-7-126 shall be computed on all
deficiencies or unpaid tax from the date such payment of tax was due until
paid.
(2) For purposes of this rule
the date such payment of tax was due shall refer to the due date of the return
on which such tax is payable, and shall ignore any extension of time granted
for filing such return, or any assessment of tax prior to such due
date.
(3)If there is a deficiency
or unpaid tax on any return which is subsequently decreased by a carry-back of
a net operating loss, interest and penalty shall be computed on such deficiency
or unpaid tax, without consideration of such carry-back loss, from the date
such payment of tax was due to the last day of the taxable year in which such
net operating loss occurs. Thereafter, interest and penalty shall be computed
on the tax after adjustment for deduction of the net operating loss carry-back.
Example:An individual filed the 2001 return reflecting
taxable income, and did not pay the $400 tax shown on the return. The taxpayer
then filed the 2003 return reflecting a net operating loss of $2000, and then
filed a timely claim for refund carrying the loss to 2001. The unpaid tax
balance after deduction of the operating loss carry-back is $280.00. Interest
and penalty would be computed as follows, presuming the date of payment of the
liability to be August 15, 2004:
Interest and penalty on $400 Additional Tax from
April 15, 2002 to December 31, 2003 126
Additional Tax Due After Net Operating
Loss Carry-back Deduction 280
Interest and penalty on $280 from
January 1, 2004 to August 15, 2004 29
---------
Net Deficiency at August 15, 2004 $435
Note: This regulation applies to all taxpayers. An individual
taxpayer was used for illustration purposes only.
(4)The interest and penalty provided by this
regulation shall be assessed and collected as if it were an integral part of
the tax upon which it is computed.
Notes
Ga. Comp. R.
& Regs. R. 560-7-8-.15
O.C.G.A. Secs.
48-2-12,
48-2-40,
48-2-42,
48-7-81,
48-7-126.
Original Rule entitled
"Interest When Filing Time Extended" adopted. F. and eff.
June 30, 1965.
Repealed: New Rule entitled "Interest on Deficiencies"
adopted. F. Feb. 16, 1972; eff.
Mar. 7, 1972.
Amended: F. May 4,
1976; eff. May 24,
1976.
Repealed: New Rule of same title adopted. F.
Nov. 15, 2005; eff.
Dec. 5,
2005.
