State & Local Tax Impacts of COVID-19 for Georgia – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Georgia

  • Georgia is extending the 2019 corporate income, individual income, and trust income tax filing and payment deadline to July 15 from April 15 without penalties and interest. The extension also applies to state estimated income tax payments due on April 15 but doesn’t apply to the filing, payment or deposit of other state taxes, including employee withholding and sales tax. Vehicle registrations that expire between March 16 and May 14 also are extended through May 15.
    • Georgia DOR Notice, March 25, 2020.
  • Georgia reiterated that estimated income tax payments due on April 15 and June 15 were extended to July 15, 2020. This also applies to any income tax return, payment or estimate due after April 15, 2020, and before July 15. Additionally, the statute of limitations to file a refund claim for a previous tax year has been extended to July 15, 2020, for refund claims that would have expired before July 15, 2020.
    • Georgia DOR Notice, April 16, 2020.
  • Georgia has clarified that it won’t use employees’ relocation, a direct result of temporary remote work requirements, as the basis for establishing Georgia nexus for corporate income and individual income tax purposes. If an employee remains in the state after the temporary remote work requirements end, normal rules for determining nexus, employee wages and the employer income tax withholding obligations will apply.
    • Georgia DOR FAQs, May 1, 2020.
  • Georgia will conform to most tax features of the federal coronavirus relief law but decouples from the net operating loss carryback provisions and the new benefits for excess business losses by noncorporate taxpayers. For taxable years beginning on or after January 1, 2019, Georgia adopts the 15-year life for QIP but hasn’t adopted bonus depreciation.
    • Georgia H.B. 846, Laws 2020, effective March 27, 2020.
  • Georgia provided additional information and guidance to county tax commissioners and boards of assessors regarding the tolling of property tax appeal deadlines by the Georgia Supreme Court emergency orders issued due to the COVID-19 pandemic. The property tax appeal deadline is extended to August 27 for notices of assessment issued between March 14 and July 13. The DOR must issue an order authorizing the collection of ad valorem taxes upon determination that a county tax digest is in proper form, accompanied by all documents, statistics, and required certifications, and that the properties under appeal are within the limits set by law. 
    • Georgia DOR Information Bulletin, August 17, 2020.
  • Georgia issued guidance on the qualification of certain costs for the Film Tax Credit for individual income and corporate income tax purposes as affected by COVID-19. Costs incurred during the COVID-19 shutdown qualify for the credit only if they are due to the COVID-19 shutdown, are not reimbursed by insurance or government benefits, and production continues filming in the state. Cast and crew compensation and accommodations for quarantining in the state don’t qualify for the credit because the state has no quarantine mandate. Post-COVID-19 costs incurred to adhere to federal, state, or local COVID-19 guidelines qualify but only to the extent they are not paid or reimbursed by insurance or government benefits. 
    • Georgia DOR Coronavirus Tax Relief FAQs, October 14, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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