IT-CR-UET: Underpayment of Estimated Tax by Composite Filers (2024)
Georgia · Georgia DOR · Used for tax years 2024
Georgia Form IT-CR UET helps composite filers determine whether enough income tax was paid throughout the year through withholding or estimated tax installments. It calculates underpayments and any penalty and provides for exceptions that may avoid the penalty. The form is attach
Who files this form
Composite filers may use Form IT-CR-UET to check whether enough income tax was paid throughout the year through withholding or estimated tax installments. It determines whether an underpayment penalty applies or an exception avoids the penalty.
The form says to attach it to Form IT-CR. This version applies to tax years 2024 and later.
When it's due
For tax year 2024, the form prints this estimated-payment schedule for calendar-year taxpayers required to file Form CR-ES:
| When requirements are first met | Payment due date | Maximum installments |
|---|---|---|
| January 1 through March 31 | April 15 | 4 |
| April 1 through May 31 | June 15 | 3 |
| June 1 through August 31 | September 15 | 2 |
| On or after September 1 | January 15 | 1 |
The schedule does not print a calendar year beside these payment dates. If a date falls on a Saturday, Sunday, or legal holiday, use the next regular workday.
Fiscal-year taxpayers should contact the Department at 1-877-423-6711 for information about the underpayment penalty.
What you'll need
Have these forms and records available:
- Form IT-CR, including the tax on Line 1 and credits on Schedule 1, Lines 2 and 7e.
- The immediately preceding year's tax return, covering a 12-month period, for the prior-year tax amount.
- Records of estimated tax payments, payment dates, and tax withheld.
- The entity name and identification number.
If you claim an exception, you may also need:
- For Exception 1, separate calculations for each partner, shareholder, or member. Individual and fiduciary partners use the exceptions on Form 500-UET; all other partners use the exception on Form 600-UET.
- For Exception 2, entity income records through the month before each installment is due. If IT-CR option 2 was used, also have the Georgia-apportioned deductions and exemptions for all individuals included in that option.
If you made more than one payment for an installment, attach a separate computation for each payment.
How to file
Attach Form IT-CR-UET to Form IT-CR. The supplied text does not give a mailing address or e-filing directions.
To complete the calculation:
- Complete Lines 1 through 5 using the current-year tax, credits, and prior-year tax.
- Enter installment due dates and complete the installment calculations on Lines 6 through 13. Treat withholding as paid equally for each quarter.
- Check the penalty exceptions. Complete Lines 16 through 20 for installments not covered by an exception.
- Add the penalties from Line 19 on Line 20, and enter that total in the space provided on Form IT-CR.
Common mistakes
- Forgetting the attachment: The form says to attach IT-CR-UET to Form IT-CR.
- Using a prior-year return that covers less than a full year: Line 4 requires a return for a 12-month period.
- Allocating withholding unevenly: Lines 9 and 13 say to treat withholding as paid equally for each quarter.
- Skipping the Line 10 carryover calculation: Apply the excess of prior columns' Line 9 totals over their Line 8 totals as a credit. If there is no excess, enter zero.
- Combining multiple payments without supporting calculations: Attach a separate computation for each payment when more than one payment was made for an installment.
- Missing the weekend or holiday rule: Use the next regular workday when a listed payment date falls on a Saturday, Sunday, or legal holiday.
Questions people ask
What is the underpayment penalty rate?
The form states a penalty of 9 percent a year on the unpaid amount. Line 19 calculates it using the underpayment on Line 16 and the number of days on Line 18.
Can an exception avoid the penalty?
Yes. You are not liable for a penalty for a period if the current-year payments on Line 13 equal or exceed the amount required under an applicable exception for that period.
How does the annualized-income exception work?
Exception 2 applies when current-year tax payments equal or exceed 70 percent of the tax on annualized taxable income for the period from the start of the year through the end of the month before the installment is due.
How is Exception 1 calculated?
Compute each quarterly exception separately for each partner, shareholder, or member. Combine the resulting tax amounts and enter the total on Line 14. The form notes that this can be complex and allows the simpler Exception 2.
What should fiscal-year taxpayers do?
Contact the Department at 1-877-423-6711 for information about the penalty for underpayment of estimated taxes.