Tax not paid by the statutory due date of the return is subject to 1 percent interest and 5 percent late filing and/or 1/2 of 1 percent late payment penalty per month, or fraction thereof. Interest accrues until the tax due has been paid in full; the combined total of late filing and late payment penalty cannot exceed 25 percent of the tax shown on the return. An extension of time for filing the return does not extend the date for making the payment. Additional penalties may apply as follows:
- Frivolous Return Penalty - $1,000. (A frivolous return is one that contains incorrect or insufficient information to accurately compute the appropriate tax liability with the intent to delay or impede Georgia tax law or is based on a frivolous position.)
- Negligent Underpayment Penalty - 5 percent of the underpaid amount.
- Fraudulent Underpayment Penalty - 50 percent of the underpaid amount.
- Failure to File Estimated Tax Penalty - 9 percent per year for the period of underpayment. Form 500 UET is available upon request for computation of penalty on underestimated installments.