How to File a Georgia Partnership Tax Return

A partnership operating in Georgia follows specific state tax regulations, primarily using Form 700, the Partnership Tax Return. This form is used to report the partnership’s financial activities and to make an annual election to pay tax at the entity level or to calculate nonresident withholding. When the entity-level tax is not elected, the partnership’s income, deductions, and credits are passed through to the individual partners, who then report them on their own tax returns.

Georgia Partnership Filing Obligations

A partnership must file a Georgia tax return if it has a connection, or “nexus,” with the state. This filing obligation is triggered if the partnership is legally organized in Georgia or actively conducts business there. Business activities include selling goods or services, owning or leasing property, or having employees within Georgia’s borders.

A partnership must also file if it derives any income from sources within Georgia, even without a physical presence in the state. This could include income from property located in Georgia or from a financial interest in another business operating in the state. The requirement to file Form 700 applies whether the partnership generated a net profit or incurred a loss for the tax year.

Required Information and Tax Forms

Filing a Georgia partnership return requires having a finalized federal return, Form 1065, on hand. Many of the figures and schedules from the federal return are required to complete Georgia’s Form 700. If filing by mail, a copy of the completed federal return must be attached to the Georgia return. All official forms and their accompanying instructions can be downloaded from the Georgia Department of Revenue’s website.

Information required for Form 700 includes:

• The partnership’s legal name, physical address, and Federal Employer Identification Number (FEIN)
• Detailed records for every partner, including their full name, address, Social Security Number or FEIN, their specific ownership percentage, and their distributive share of income or loss
• Information to correctly apportion income to Georgia if the partnership operates in multiple states

Submission and Payment Procedures

The deadline for filing the Georgia partnership return, Form 700, is the 15th day of the third month following the close of the tax year. For partnerships using a standard calendar year, this due date is March 15. If the partnership cannot meet this deadline, it can secure an automatic six-month extension to file if it has already filed for a federal extension with the IRS. If only a state extension is needed, the partnership must file Form IT-303 by the original due date.

An extension to file is not an extension to pay. Any tax owed, such as nonresident withholding, must still be paid by the original March 15 deadline to avoid penalties and interest. Payments can be made electronically through the Georgia Tax Center portal or by mailing a check with the appropriate payment voucher.

Once complete, the return can be submitted electronically using approved tax software or through the Georgia Tax Center. For those who prefer to file by mail, the completed Form 700, along with a full copy of the federal return and any other required schedules, should be sent to the address specified in the current year’s form instructions. When filing electronically, preparers must complete and retain Form GA-8453, the Georgia e-file Signature Form, for their records for three years.

Handling Georgia Nonresident Member Tax

Georgia imposes a specific tax obligation on partnerships related to their nonresident members. The partnership is required to withhold Georgia income tax from the distributive share of income that is attributable to each partner who is not a resident of Georgia. This withholding is calculated at Georgia’s flat income tax rate of 5.39% and is remitted by the partnership on behalf of the nonresident partner.

Partnerships have two alternatives to this withholding. The first option is to file a composite tax return using Form IT-CR. In this scenario, the partnership files a single, consolidated return for all its qualifying nonresident partners and pays the resulting tax liability on their behalf. This method simplifies the process for individual partners, as they are not required to file their own separate Georgia income tax returns.

The second alternative involves each nonresident partner completing and signing Form G-2-A. By signing this form, the partner agrees to personally file a Georgia income tax return and pay any associated tax, which relieves the partnership of the withholding requirement. The partnership is responsible for collecting and retaining these signed agreements in its records, making them available to the Department of Revenue upon request.