The Penalty and Interest section is used to enter penalty and interest amounts that apply to your Georgia return. In most cases, these amounts are only entered if the Georgia Department of Revenue has assessed them or if you are filing an amended return and need to report previously calculated amounts.
Program Entry
To access this section, navigate to:
Georgia → Penalty and Interest
Penalty: Late Payment and/or Late Filing
Use this field to enter any penalty amount related to:
- Filing the return after the due date
- Paying tax after the due date
- Failure to pay the full amount of tax owed by the due date
If the Georgia Department of Revenue has notified you of a penalty amount, enter that amount in this field.
When Might a Penalty Apply?
The Georgia Department of Revenue may assess penalties for:
- Late filing
- Late payment
- Failure to comply with Georgia tax requirements
- Other filing or payment issues identified during processing
In some situations, more than one penalty may apply at the same time.
An extension of time to file is not an extension of time to pay. Any tax due should generally be paid by the original deadline to help reduce penalties and interest.
Interest
Use this field to enter any interest amount owed on unpaid Georgia taxes.
Interest is generally charged when taxes are not paid by the original due date and continues to accrue until the balance is paid.
When Might Interest Apply?
Interest may apply when:
- Tax remains unpaid after the due date
- Additional tax is assessed by the Georgia Department of Revenue
- An amended return results in additional tax due
How Does Georgia Calculate Interest?
Interest on unpaid taxes accrues monthly from the date the tax is due until the date it is paid.
- For interest accruing before July 1, 2016, the rate was 12% annually (1% per month).
- For interest accruing on or after July 1, 2016, the rate is based on the Federal Reserve prime rate plus 3%.
- The interest rate is reviewed annually and may be adjusted each January.
Current Georgia penalty and interest rates
Should Everyone Complete This Section?
No. Most taxpayers will leave these fields blank.
This section is used only when:
- A specific penalty amount has been assessed
- A specific interest amount has been assessed
- Instructions from the Georgia Department of Revenue indicate an entry is required
Important Notes
- Most taxpayers will leave these fields blank.
- Do not estimate penalty or interest amounts unless specifically instructed to do so.
- Review any notices received from the Georgia Department of Revenue before entering amounts.
- Georgia updates interest rates periodically, so always verify current rates using the Georgia Department of Revenue website.
- Incorrect entries may affect the return's balance due calculation.
- If no penalty or interest applies, these fields can remain blank.