Georgia Governor Kemp signed HB 1058 making it easier for affiliated corporations to file Georgia consolidated income tax returns. The law change applies to tax years beginning on or after January 1, 2023.
HB 1058 removes the requirement that affiliated corporations that desire to file consolidated returns request preapproval from Georgia. Affiliated groups will be able to elect to file separate or consolidated income tax returns. The election will be irrevocable for five years.
Currently (prior to HB 1058), affiliated groups have to obtain permission from the Georgia Department of Revenue at least 75 days prior to the due date of the Georgia return (including extensions) or at least 75 days prior to the filing of the return, whichever occurs first, for the tax year for which permission to file on a consolidated basis is requested. Failure to request permission by such time results in the denial of the application and the tax returns to be processed on a separate company basis.
If you have any questions regarding filing consolidated returns in Georgia currently or want to plan for 2023, please contact Brian Strahle at brian.strahle@frazierdeeter.com.