Georgia Unfiled Payroll Tax Returns Checklist
Georgia unfiled withholding tax returns occur when a business fails to submit required state withholding forms by their due dates. These returns report wages paid to employees and taxes withheld from compensation, along with nonresident withholding obligations and annual income statements.
The Georgia Department of Revenue uses this information to verify tax compliance and ensure proper employee wage reporting. When withholding returns remain unfiled, the state cannot process withholding information accurately, which affects employee tax records and creates compliance gaps in the employer’s account.
What This Issue Means
An unfiled withholding tax return is a required employment or withholding tax form that was not submitted to the Georgia Department of Revenue by its deadline. Georgia employer withholding
obligations include multiple types of returns
- Form G-7 reports wages and taxes withheld from employee compensation.
- Form G-7NRW reports nonresident withholding for partnerships and S corporations.
- Form G-1003 serves as the annual income statement return filed with W-2s and 1099s.
The state uses unfiled return notices to alert employers that one or more required forms are missing from their account. State enforcement represents an escalation past the initial compliance phase.
Why the State Issued This or Requires This
Georgia requires employers to file withholding tax returns to track and document employment taxes withheld from employee paychecks and nonresident income. According to state administrative processes, the Georgia DOR matches filings against expected returns based on employer registration and historical filing patterns.
What Happens If This Is Ignored
When Georgia unfiled withholding tax returns are not addressed, the state assesses specific penalties under O.C.G.A. § 48-7-126. Failure to file carries a penalty of $25 plus 5% of tax withheld before credits or adjustments, with an additional 5% for each subsequent late month, capped at $25 plus 25% of tax withheld.
Failure to pay incurs $25 plus 5% of the tax, with an additional 5% for each subsequent late month, also capped at $25 plus 25% of tax withheld. Additional penalties include $10 per employee per quarter for failure to withhold and $10 to $50 per form for failure to provide or file
W-2s or 1099s, depending on lateness.
Follow-up notices are issued, and in cases where no response or payment is received, the state may pursue formal collection actions, including liens, levies, or wage garnishment. Continued non-compliance results in escalating enforcement measures that increase financial liability.
What This Does NOT Mean
An unfiled withholding tax return notice does not automatically mean criminal charges are being filed or that the employer is under criminal investigation. The notice is an administrative compliance matter and an alert, not a final enforcement action.
Checklist: What to Do After Receiving an Unfiled
Withholding Tax Return Notice
Step 1: Gather the Notice and Related Documents
Collect the unfiled withholding tax return notice and any other recent correspondence from the
Georgia Department of Revenue. Write down the tax periods referenced, the specific form types listed as unfiled (such as Form G-7 filing requirements for quarterly, monthly, or semi-weekly periods), and any deadline dates mentioned.
Step 2: Review Your Internal Payroll Records
Locate your payroll records for the tax periods listed on the notice. Confirm which returns were prepared internally or by a payroll service provider and document whether returns were filed, when they were filed, and the method used.
Step 3: Contact Your Payroll Service Provider (If Applicable)
When a payroll company or accountant prepares and files returns on your behalf, contact them immediately. Request confirmation of filing dates, filing methods, and receipt documentation, and ask them to provide proof of filing or explain why the return was not filed.
Step 4: Request Your Account Record from the Georgia Department of
Revenue
Contact the Georgia DOR to request a current copy of your tax account record through the
Georgia Tax Center. This shows what returns the state has received and which are marked unfiled.
Step 5: Determine Which Returns Are Actually Missing
Compare your internal payroll records against the state's account records. Identify whether returns were filed but not recorded by the state, or whether returns were never prepared or filed.
Step 6: If Returns Were Filed but Not Recorded, Submit Proof of Filing
When you have documentation showing the returns were mailed, e-filed, or submitted in person, gather that proof. Submit copies to the address or method specified in the notice.
Step 7: If Returns Were Never Filed, Prepare and File the Unfiled Returns
Reconstruct payroll data for the missing periods using your internal records, W-2 forms, or bank statements. Prepare the required Georgia withholding tax forms and file promptly according to current filing instructions, as Georgia employer withholding tax penalties will apply.
Step 8: Respond to the Notice Within the Stated Timeframe
Write a response to the unfiled withholding tax return notice that includes copies of filed returns, proof of filing, or newly prepared returns. Reference the notice number and tax periods in your letter.
Step 9: If Penalties Are Assessed, Review Penalty Waiver Options
Under O.C.G.A. § 48-2-43, the Commissioner may waive penalties when reasonable cause exists. The Georgia DOR cannot consider a penalty waiver request if there is an outstanding tax
liability or missing returns, so these must be resolved first. Requests are made via Form TSD-3 or through the Georgia Tax Center after all compliance issues are addressed. Documentation and taxpayer compliance history factor into the Department’s evaluation of each request.
- Missing response deadlines can result in continued penalties and escalated collection
- Sending documentation to the wrong department address may result in non-receipt and
- Filing a return and paying the tax owed are separate actions that must both be
- Unfiled returns do not expire or resolve without intervention.
- Not keeping copies of responses makes it difficult to verify your actions with the state
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 10: Monitor Your Mail and Email
After submitting your response, expect follow-up correspondence from the Georgia Department of Revenue. The state may acknowledge receipt, request additional information, or provide a new account statement reflecting filed returns.
What Happens After This Is Completed
After you respond to the unfiled withholding tax return notice, the Georgia Department of
Revenue updates its account records and reviews the information provided. When missing returns have been filed or filing documentation has been verified, the unfiled status should be resolved.
Common Mistakes to Avoid actions. continued unfiled status. addressed. later.
Taking Action
Georgia unfiled withholding tax returns require a documented response that addresses filing obligations and resolves penalty issues. Understanding Georgia Form G-7 filing requirements,
gathering internal records, and submitting a timely response resolves the unfiled status and demonstrates compliance with the Georgia Department of Revenue.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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