Tax News

CCH (cch.taxgroup.com) reports:

  The Georgia Department of Revenue has amended its personal income tax rule covering the withholding on distributions to nonresident members of partnerships, S corporations, and limited liability companies. The rule conforms to statutory changes that reduced the penalty from 100% to 25% on pass-through entities that fail to withhold tax on distributions. Withholding is required with respect to distributions paid, or distributions credited but not paid, to a nonresident member. The due date for taxes deducted and withheld on distributions credited but not paid by the entity to its nonresident members is the due date for filing the income tax return for the entity. In lieu of withholding, the entity may elect to file a composite income tax return for one or all of its nonresident members using Form IT-CR.

  Subscribers to CCH Tax Research NetWork can view the regulation.

Reg. Sec. 560-7-8-.34 , Georgia Department of Revenue, effective January 18, 2009