Discussion:State of Georgia underpayment penalty

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Discussion Forum Index --> Advanced Tax Questions --> State of Georgia underpayment penalty
Discussion Forum Index --> Tax Questions --> State of Georgia underpayment penalty

Newarcher (talk|edits) said:

30 March 2008

Hi all, good 'holy cow, I am working late' Saturday to you.

I have a client who is new to GA as of 2007. They ran their own business and the wife is a W-2 based teacher. Their business is new and they didn't know to file quarterlies for Federal or State.

I completed all the State schedules and received the message from TaxAct that I needed to fill out form 500-UET to see if an underpayment penalty will be assessed. The problem is that their GA tax from last year was 0 because there was no last year, they lived in LA last year. So going by the form, they will be assessed an underpayment penalty.

The numbers are these:

Tax due 2007 : $1,879

Withheld 2007: $978

Due to State: $901

How do I determine if an underpayment penalty is due when the person lived out of State in the previous year?

Thanks,

Michael

TheTinCook (talk\|edits) said:	30 March 2008
Shouldn't be an underpayment penalty under Exception 1 if there was no GA ta liability last year.

KatieJ (talk\|edits) said:	30 March 2008
Remember, the client existed in 2006; he just didn't have any Georgia income. Theoretically you could file a zero return with Georgia for 2006, showing zero tax liability. Generally states won't make you do that; they just allow Exception 1 for first-time filers.