Georgia Form IT-CR is the Composite Income Tax Return that pass-through entities (partnerships, S corporations, and LLCs taxed as partnerships) file with the Georgia Department of Revenue to report and pay Georgia income tax on behalf of their nonresident owners. It lets the entity pay state tax for nonresident partners, shareholders, or members in one combined filing instead of forcing each nonresident to file a separate Georgia Form 500 return.
Skipping or botching IT-CR has real teeth. Georgia can hit the entity with the late-file and late-pay penalties under O.C.G.A. § 48-7-86, plus interest at the federal short-term rate plus 3% under O.C.G.A. § 48-2-40. According to the Georgia DOR’s tax statistical report, Georgia processed more than 180,000 pass-through entity returns in the most recent reporting year, and the agency flags composite filings as one of the top sources of math and allocation errors.
Here is what you will learn in this guide:
- 📋 What Form IT-CR does and which pass-through entities must file it
- 🗂️ The exact documents, K-1 data, and ID numbers to gather before you start
- ✍️ A line-by-line walkthrough of every page, schedule, and signature block
- 👥 Three full filled-out examples using real-world fact patterns
- ⚠️ The 10 most common mistakes filers make and the penalties they trigger
The current revision is the 2025 Form IT-CR (Rev. 09/2025), which is the version you will use for tax years beginning in 2025 and filed in 2026. Always confirm you have the correct year stamped at the top of the official IT-CR PDF before you begin.
What the Form Is and Who Must File It
Form IT-CR is Georgia’s Nonresident Composite Tax Return, authorized by O.C.G.A. § 48-7-129. The statute lets a pass-through entity report and pay Georgia tax on the Georgia-source income allocated to its nonresident owners as a single combined return. Without IT-CR, every nonresident owner with Georgia-source income above the filing threshold would have to file their own Georgia Form 500 and the entity would have to withhold under Form G-7-NRW.
You must file IT-CR if you operate any of these entity types and have at least one nonresident owner with Georgia-source income:
- A partnership filing federal Form 1065
- An S corporation filing federal Form 1120-S
- A limited liability company (LLC) taxed as a partnership or S corporation
- A trust that distributes Georgia-source income to nonresident beneficiaries (in limited cases)
The composite election is voluntary for the entity but binding on the included owners. Once a nonresident is included on IT-CR, that nonresident cannot also file their own Georgia Form 500 to claim a refund or different deductions for the same income. The entity files IT-CR with the Georgia Department of Revenue, not the IRS, and the return is separate from the entity’s federal filing and from Georgia Form 700 (partnership return) or Form 600S (S corp return). The entity still files its own Form 700 or 600S; IT-CR is layered on top to handle the nonresident owners’ tax.
A misconception worth killing now: IT-CR is not a withholding return. Withholding on nonresident distributions runs on a separate track through Form G2-A. IT-CR is an actual income tax return that calculates final Georgia tax for the included owners.
Before You Start: Documents and Information You Need
Gather everything below before you open the form. Missing a single item — especially a nonresident owner’s Social Security Number — stops the return cold and forces an amended filing.
- Federal return for the entity (Form 1065 or 1120-S). You pull the ordinary business income, separately stated items, and apportionment data from this return. Without it, you cannot compute Georgia-source income.
- Georgia Form 700 or 600S, already prepared. IT-CR uses the Georgia apportionment percentage from these returns. If the underlying entity return is wrong, IT-CR will be wrong.
- Schedule K-1 for every nonresident owner. Each K-1 shows the owner’s distributive share. You need these to allocate Georgia-source income owner by owner.
- Full legal name, address, and Social Security Number or FEIN for every nonresident owner. Schedule 1 of IT-CR requires each owner’s tax ID. A missing or wrong SSN triggers a letter from DOR within 60 days.
- Georgia FEIN and Georgia withholding number for the entity. You enter these at the top of the form. The Georgia withholding number is different from the FEIN.
- Apportionment workpapers (gross receipts, payroll, property in Georgia). Georgia uses a single-factor gross receipts apportionment under O.C.G.A. § 48-7-31 for most entities. You need the numerator and denominator.
- Estimated tax payments made on Form IT-CR ES. You will credit these on Page 1 against the composite tax due. Pull the GTC payment confirmations.
- Credit certificates for any Georgia tax credits being passed through. Examples include the film tax credit, jobs tax credit, and qualified education expense credit.
- Prior-year IT-CR if this is not the first filing. The prior return shows which owners were included last year, useful for consistency and for catching new nonresidents.
If you are missing the Georgia withholding account number, register for one at the Georgia Tax Center before you start. Filing without it will cause the return to post to the wrong account.
Where to Get the Form and How to Access It
The official current-year Form IT-CR PDF lives on the Georgia Department of Revenue’s forms library. Always download a fresh copy each tax year because the apportionment factor, tax rate, and standard deduction amounts can change. Georgia dropped its individual income tax rate to a flat 5.39% for 2024 and continues to adjust it under House Bill 1437, so the rate printed on a prior-year form will not match.
You can fill the form out in three ways. The first is the fillable PDF posted by DOR, which you complete on screen and print for paper filing. The second is approved tax software — most professional packages (Drake, Lacerte, ProSeries, UltraTax, CCH Axcess) support IT-CR and can e-file it through the Georgia Tax Center MeF system. The third is direct entry through the Georgia Tax Center itself, where you log into the entity’s account, select “File a Return,” and walk through the IT-CR module.
For paper filers, print on plain white paper, single-sided, with no staples and no hand-written corrections over printed text. The DOR scanner rejects double-sided pages and reads handwritten edits as errors.
A common misconception is that you can submit IT-CR by attaching a PDF to an email. DOR does not accept email submissions for IT-CR under any circumstance. Use mail, GTC upload, or MeF e-file only.
Step-by-Step: How to Fill Out Form IT-CR Line by Line
The form has a one-page summary calculation, Schedule 1 (the nonresident owner detail), Schedule 2 (the apportionment computation), and a signature block. Work through each H3 below in order.
Page 1, Header — Entity Name, FEIN, and Tax Year
The header block at the very top asks for the entity’s full legal name, mailing address, FEIN, Georgia withholding number, and the tax year covered.
Enter the entity’s name exactly as it appears on its federal return and on its Georgia Form 700 or Form 600S. Use ALL CAPS, no punctuation in the name field, and the nine-digit FEIN with no dashes (e.g., 581234567).
Example: PEACHTREE CONSULTING LLC, FEIN 581234567, GA withholding number 0001234-WH, tax year 01/01/2025 to 12/31/2025.
The most common edge case is a fiscal-year filer. If your entity uses a fiscal year (say, July 1 to June 30), enter the actual start and end dates, and file IT-CR by the 15th day of the 3rd month after year-end for partnerships and the 3rd month for S corps under O.C.G.A. § 48-7-56.
A common mistake is using the entity’s trade name or DBA instead of the legal name. The consequence is that DOR cannot match the return to the entity’s account and the payment posts to “unidentified,” which delays credit by 60 to 90 days.
The misconception people hold here is that the FEIN alone is enough. It is not — Georgia requires the Georgia withholding number (the WH-prefixed account) for IT-CR processing.
Page 1, Line 1 — Total Georgia Taxable Income of Included Nonresidents
Line 1 asks for the sum of Georgia-source taxable income for every nonresident owner you are including in the composite filing.
Pull this number from the bottom of Schedule 1, Column (e). You complete Schedule 1 first, then carry the column total forward. Enter the amount as a whole dollar with no cents and no commas (e.g., 425000).
Example: Carlos Mendez, Priya Shah, and Jordan Reilly are the three nonresident members of Peachtree Consulting LLC. Their combined Georgia-source income from Schedule 1 is $425,000, which Carlos enters as 425000 on Line 1.
The edge case to watch is a nonresident with a Georgia-source loss. You still include the loss on Schedule 1 (as a negative number), and it reduces Line 1. You cannot, however, generate a refundable composite refund from a loss alone — the owner must file Form 500 to claim that.
A common mistake is entering federal taxable income instead of Georgia-source income. The consequence is overpayment of Georgia tax by the apportionment percentage difference, often tens of thousands of dollars on mid-size entities.
The misconception is that “Georgia-source income” equals “income earned while physically in Georgia.” It does not — it is the apportioned share under Georgia’s single-factor gross receipts formula in O.C.G.A. § 48-7-31.
Page 1, Line 2 — Georgia Standard Deduction for Composite Filers
Line 2 captures the standard deduction allowed against composite income. Georgia allows a per-owner standard deduction for composite filings, which the entity multiplies by the number of nonresident owners included.
For 2025, the single-filer standard deduction is $12,000 per included owner under O.C.G.A. § 48-7-27. If three nonresidents are included, multiply 3 × $12,000 = 36000 and enter that on Line 2.
Example: Peachtree Consulting LLC has three included nonresidents, so the entry on Line 2 is 36000.
The edge case is a corporate or trust nonresident owner. Corporate owners do not get the personal standard deduction — exclude them from the multiplier. If two of three owners are individuals and one is a C corporation, multiply 2 × $12,000 = 24000 instead.
A common mistake is doubling the deduction for owners filing married-jointly elsewhere. The consequence is an underpayment notice within 90 days because composite filers get the single standard deduction only.
The misconception is that no deduction is allowed at all on a composite return. It is — but only the single standard deduction, never itemized deductions or personal exemptions.
Page 1, Line 3 — Net Taxable Income
Line 3 is Line 1 minus Line 2. This is the income against which Georgia’s flat tax rate is applied.
Subtract Line 2 from Line 1 and enter the result. If the result is negative, enter zero (you cannot create a composite NOL on this return).
Example: $425,000 − $36,000 = 389000 on Line 3 for Peachtree Consulting LLC.
The edge case is when Line 2 exceeds Line 1, which happens when the entity has many included owners but little Georgia-source income. Enter zero, then move forward — the standard deductions in excess simply expire on the composite return.
A common mistake is failing to update Line 3 after revising Schedule 1. The consequence is that the tax on Line 4 is computed off stale income and the return is flagged for math correction.
The misconception is that Line 3 can be negative. It cannot — composite returns floor at zero.
Page 1, Line 4 — Georgia Composite Tax
Line 4 multiplies Line 3 by Georgia’s flat individual income tax rate.
For 2025, multiply Line 3 by 5.39% (0.0539). Round to the nearest whole dollar. Enter the result with no cents and no dollar sign.
Example: $389,000 × 0.0539 = 20967 on Line 4.
The edge case is a tax year that straddles a rate change. Georgia’s rate is scheduled to step down to 4.99% over time under HB 1437; for fiscal years that bridge the change, use the rate in effect at the beginning of the entity’s tax year.
A common mistake is using the prior-year rate (e.g., 5.49% from 2024). The consequence is a math-error notice and either a small refund or a small balance due, with interest charged on any underpayment.
The misconception is that corporate nonresidents get the corporate rate of 5.75% on the composite return. They do not — IT-CR uses the individual rate for all included owners regardless of entity type.
Page 1, Line 5 — Georgia Credits
Line 5 captures any Georgia tax credits passed through from the entity to the included nonresidents.
List the credit type, the certificate number (if applicable), and the dollar amount. Common credits include the Georgia film tax credit, the jobs tax credit, and the qualified education expense credit. Each credit must be supported by a credit certificate or pre-approval letter attached to the return.
Example: Peachtree Consulting LLC passes through $2,500 of jobs tax credit allocated to the three nonresidents. Enter 2500 on Line 5 and attach the Form IT-CA workpaper.
The edge case is a nonrefundable credit that exceeds Line 4 minus Line 5. The credit cannot reduce Line 4 below zero on the composite return; the unused portion does not carry forward at the composite level — it is lost unless the owner files individually.
A common mistake is claiming a credit that was not pre-approved by DOR (when pre-approval is required). The consequence is full disallowance of the credit and a recomputed balance due plus interest.
The misconception is that all federal credits flow through. They do not — only Georgia-specific credits listed in O.C.G.A. Title 48, Chapter 7, Article 2 qualify.
Page 1, Line 6 — Net Tax Due
Line 6 is Line 4 minus Line 5.
Subtract credits from tax. If the result is zero or negative, enter zero. Otherwise, enter the positive amount.
Example: $20,967 − $2,500 = 18467 on Line 6.
The edge case is an entity with credits exceeding tax. The composite return shows zero on Line 6, but the excess credit does not carry to next year on IT-CR — owners would have had to take the credit on their own Form 500 to preserve carryforward.
A common mistake is forgetting to subtract Line 5. The consequence is overpayment, which DOR will refund — but only after a 90-day processing cycle.
The misconception is that Line 6 is the final amount owed. It is not — Line 7 (estimated payments) and Line 8 (penalties and interest) still apply.
Page 1, Line 7 — Estimated Payments and Prior-Year Credit
Line 7 captures the total of estimated tax payments made on Form IT-CR ES during the year, plus any prior-year overpayment credit applied forward.
Add the four quarterly payments (due April 15, June 15, September 15, and January 15 of the following year) plus any prior-year credit. Pull the exact amounts from the Georgia Tax Center payment history.
Example: Peachtree Consulting LLC paid $5,000 per quarter for four quarters, totaling 20000 on Line 7.
The edge case is a final-year entity (terminating during the year) that did not make four quarterly payments. Enter only what was actually paid; the underpayment penalty under O.C.G.A. § 48-7-120 may still apply.
A common mistake is double-counting a payment that was made for the entity’s own Form 700 or 600S. Those payments belong on the entity’s return, not on IT-CR. The consequence is a misposted credit that can take 6 months to reverse.
The misconception is that withholding payments under Form G2-A belong here. They do not — those flow to the individual owners’ Form 500, not to IT-CR.
Page 1, Line 8 — Penalty and Interest
Line 8 is the self-assessed late-file penalty, late-pay penalty, and interest if the return is filed or paid after the due date.
Compute the late-file penalty at 5% per month (max 25%) of the tax due, the late-pay penalty at 0.5% per month (max 25%), and interest at the federal short-term rate plus 3% under O.C.G.A. § 48-2-40. Enter the combined total.
Example: Peachtree Consulting LLC files on time, so Line 8 is 0.
The edge case is a return filed under a valid Form IT-303 extension. The extension waives the late-file penalty but not the late-pay penalty or interest if tax is unpaid by the original due date.
A common mistake is leaving Line 8 blank when the return is late, hoping DOR will not notice. The consequence is a notice with the agency’s computed penalty plus interest, often higher than what you would have self-assessed.
The misconception is that an extension extends the time to pay. It does not — only the time to file.
Page 1, Line 9 — Total Amount Due or Refund
Line 9 is Line 6 minus Line 7 plus Line 8. A positive number is owed; a negative number is refunded.
Subtract Line 7 from Line 6, then add Line 8. If positive, that is the balance due — pay through Georgia Tax Center or by check with Form PV-Corp. If negative, that is the refund amount.
Example: $18,467 − $20,000 + $0 = (1533) refund for Peachtree Consulting LLC.
The edge case is a refund the entity wants to apply to next year’s IT-CR estimates. Check the box for “Apply to next year” and enter the amount in the designated field below Line 9.
A common mistake is rounding Line 9 differently from Lines 6, 7, and 8. The consequence is a math-error notice and a recomputed amount that may differ from your records.
The misconception is that the refund is paid to the entity’s owners. It is not — it is paid to the entity, which then must allocate any refund among the nonresident owners per the operating agreement.
Schedule 1 — Nonresident Owner Detail
Schedule 1 is where you list every nonresident owner included in the composite filing. It has six columns: (a) name, (b) SSN or FEIN, (c) address, (d) ownership percentage, (e) Georgia-source taxable income, and (f) tax allocated.
Enter one row per included nonresident. List names in ALL CAPS, SSNs as XXX-XX-XXXX, ownership percentages to two decimal places (e.g., 33.33%), and Georgia-source income as a whole dollar.
Example: Row 1 — MENDEZ, CARLOS, SSN 123-45-6789, 123 OAK ST, AUSTIN TX 78701, 33.33%, 141,667, 7,656. Row 2 — SHAH, PRIYA, SSN 234-56-7890, similar layout. Row 3 — REILLY, JORDAN, SSN 345-67-8901.
The edge case is a tiered partnership (an upper-tier partnership that is itself a nonresident owner). Enter the upper-tier’s FEIN and report the Georgia-source income passing to it, but the upper-tier must then file its own IT-CR or Form 700.
A common mistake is omitting an owner who is a nonresident for part of the year. Part-year nonresidents cannot be included on IT-CR — they must file Form 500 individually. Including them triggers a rejection.
The misconception is that resident owners can be included to simplify the filing. They cannot — IT-CR is exclusively for nonresidents under O.C.G.A. § 48-7-129.
Schedule 2 — Apportionment Computation
Schedule 2 computes the entity’s Georgia apportionment percentage, which is then used to determine each nonresident’s Georgia-source income.
Enter Georgia gross receipts in the numerator and total everywhere gross receipts in the denominator. Divide and express as a percentage to four decimal places (e.g., 27.5432%).
Example: Peachtree Consulting LLC has $1,500,000 in Georgia receipts and $5,000,000 in total receipts. Schedule 2 shows 30.0000%.
The edge case is a service entity with cost-of-performance sourcing under prior law. Georgia switched to market-based sourcing for services effective for tax years beginning on or after January 1, 2024 under HB 1058. Use market-based for 2025 returns.
A common mistake is using a three-factor formula (property, payroll, sales). Georgia uses single-factor gross receipts only under O.C.G.A. § 48-7-31. Using three factors overstates or understates Georgia income materially.
The misconception is that Schedule 2 is optional if all income is Georgia-sourced. It is not — DOR requires Schedule 2 even when the percentage is 100%, as proof of computation.
Signature Block
The signature block at the bottom of Page 1 must be signed by an authorized officer, partner, or member-manager.
Sign in blue or black ink, print the signer’s name and title, enter the date in MM/DD/YYYY format, and provide a daytime phone number. Paid preparers complete the preparer block below.
Example: Carlos Mendez, Member-Manager, signed 03/14/2026, phone 512-555-0142.
The edge case is a return signed by a non-officer (e.g., a bookkeeper). DOR rejects the return as unsigned. Only an authorized officer, general partner, or member-manager may sign.
A common mistake is using a stamped or photocopied signature. The consequence is rejection and a 30-day window to resubmit with a wet signature, during which late-file penalties accrue.
The misconception is that an e-signature through the Georgia Tax Center is invalid. It is fully valid for MeF and GTC submissions; the wet-signature rule applies only to paper.
Three Filled-Out Examples Using Real Scenarios
Scenario 1 — Peachtree Consulting LLC (Small LLC, 3 Nonresident Members)
| Form Section | What Carlos Enters |
|---|---|
| Entity name and FEIN | PEACHTREE CONSULTING LLC, FEIN 58-1234567 |
| Tax year | 01/01/2025 to 12/31/2025 |
| Line 1 — GA taxable income | 425,000 |
| Line 2 — Standard deduction (3 × $12,000) | 36,000 |
| Line 3 — Net taxable income | 389,000 |
| Line 4 — Tax at 5.39% | 20,967 |
| Line 5 — Credits (jobs tax credit) | 2,500 |
| Line 7 — Estimated payments | 20,000 |
| Line 9 — Refund | (1,533) |
| Schedule 1 — Owners | Carlos Mendez (TX), Priya Shah (CA), Jordan Reilly (NY), each at 33.33% |
Scenario 2 — Atlanta Foundry S Corp (5 Nonresident Shareholders, Multi-State)
| Form Section | What Marcus Enters |
|---|---|
| Entity name and FEIN | ATLANTA FOUNDRY INC, FEIN 58-9876543 |
| Entity type | S Corporation |
| Line 1 — GA taxable income | 1,200,000 |
| Line 2 — Standard deduction (5 × $12,000) | 60,000 |
| Line 3 — Net taxable income | 1,140,000 |
| Line 4 — Tax at 5.39% | 61,446 |
| Line 5 — Credits (film tax credit allocation) | 15,000 |
| Line 6 — Net tax due | 46,446 |
| Line 7 — Estimated payments | 48,000 |
| Schedule 1 — Owners | 5 shareholders in FL, NC, SC, TN, AL, each at 20% |
| Line 9 — Refund | (1,554) |
Scenario 3 — Magnolia Holdings LP (Multi-Tier Partnership with Corporate Partner)
| Form Section | What Janet Enters |
|---|---|
| Entity name and FEIN | MAGNOLIA HOLDINGS LP, FEIN 58-5551212 |
| Tax year | Fiscal year 07/01/2024 to 06/30/2025 |
| Line 1 — GA taxable income | 2,800,000 |
| Line 2 — Standard deduction (3 individuals × $12,000; corp excluded) | 36,000 |
| Line 3 — Net taxable income | 2,764,000 |
| Line 4 — Tax at 5.39% | 148,980 |
| Line 5 — Credits | 0 |
| Line 7 — Estimated payments | 150,000 |
| Schedule 1 — Owners | 3 individual nonresidents + 1 nonresident C corp partner |
| Schedule 2 — Apportionment | 68.4500% market-based services |
How to File the Completed Form
You have three filing channels. Pick one and stick with it; do not file the same return twice across channels.
Online via the Georgia Tax Center. Log into gtc.dor.ga.gov using the entity’s account, select “File a Return” under the withholding/composite section, upload Schedules 1 and 2 as PDFs if requested, and pay by ACH debit, credit card, or ACH credit. There is no fee for ACH debit; credit card payments incur a 2.5% processor fee. Processing time is 4 to 6 weeks for refunds, and your proof of filing is the GTC confirmation number — save it as a PDF.
By mail. Send the signed return and any check payable to Georgia Department of Revenue to: Georgia Department of Revenue, Processing Center, P.O. Box 740397, Atlanta, GA 30374-0397. Use Certified Mail with Return Receipt — that postmark is your proof of timely filing under O.C.G.A. § 48-2-39. Processing takes 8 to 12 weeks for paper returns.
Through approved tax software (MeF e-file). Most professional packages (Drake, Lacerte, ProSeries, UltraTax, CCH Axcess) e-file IT-CR through the Georgia MeF system. The software returns an acknowledgment within 24 to 48 hours. Save the ACK as your proof of filing. There is no fee from DOR; the software vendor sets its own pricing.
If you need more time, file Form IT-303 by the original due date for a six-month extension. The extension extends time to file, not time to pay — pay any expected balance with Form IT-560C by the original due date to avoid the late-pay penalty.
What Happens After You File
DOR runs an automated math and ID match within 7 to 14 days of receipt. If your owners’ SSNs match SSA records and the math reconciles, the return posts to the entity’s account and any refund moves to issuance. If something fails, DOR sends an automated notice (typically a Notice of Proposed Assessment or a Math Error Notice) within 30 to 60 days with a 30-day response window.
Refunds for e-filed returns issue in 4 to 6 weeks; paper-filed refunds take 8 to 12 weeks. Refunds over $5,000 may be flagged for manual review under DOR’s fraud-screening protocol, adding 2 to 4 weeks. You can check refund status at Where’s My Refund using the FEIN and exact refund amount.
If DOR proposes an assessment, you have 30 days to protest under O.C.G.A. § 48-2-46 by filing a written protest with the Department. Miss the 30-day window and the assessment becomes final and collectible.
Once the return is accepted, the included nonresidents are barred from filing their own Georgia Form 500 for the same income. They should keep a copy of IT-CR and Schedule 1 for their home-state credit-for-tax-paid-to-Georgia computation, which most states (including California, New York, and Texas residents with state-tax-equivalent obligations) honor.
Mistakes to Avoid When Filling Out the Form
These ten errors account for the bulk of IT-CR rejections and assessments DOR issues each year.
- Using federal taxable income instead of Georgia-source income on Line 1. This overstates tax by the apportionment difference and triggers an assessment.
- Including a part-year resident on Schedule 1. Part-year residents cannot be on IT-CR; the return is rejected and refiled.
- Forgetting the Georgia withholding number in the header. Payment posts to “unidentified” and takes 60 to 90 days to credit.
- Multiplying the standard deduction by all owners (including corporate partners). Corporate owners get no standard deduction; this triggers a math-error notice.
- Using the prior-year tax rate (5.49% instead of 5.39%). Triggers a small balance-due notice with interest.
- Filing IT-CR but skipping Form 700 or 600S for the entity itself. IT-CR does not replace the entity’s own return; both are required.
- Treating an extension as an extension to pay. Late-pay penalty plus interest accrues from the original due date.
- Stamped or photocopied signatures. DOR rejects unsigned returns and the late-file clock keeps running.
- Mailing to the wrong P.O. Box. IT-CR has a dedicated processing P.O. Box different from the Form 500 box.
- Double-counting Form G2-A withholding as composite estimated tax. G2-A withholding belongs on the owner’s Form 500, not on IT-CR Line 7.
Do’s and Don’ts
Do’s
- Do confirm every nonresident owner is a full-year nonresident before including them on Schedule 1, because part-year residents void the return.
- Do reconcile the Georgia apportionment percentage on Schedule 2 to the entity’s Form 700 or Form 600S, since DOR cross-checks the two.
- Do pay any expected balance with Form IT-560C by the original due date even if you extend, because the extension does not extend time to pay.
- Do save the GTC confirmation number or MeF acknowledgment as a PDF, because that is your only proof of timely filing.
- Do attach all credit certificates and Schedule 1 detail in the same envelope or upload, since DOR will assess full tax if supporting documents arrive late.
- Do round consistently across Lines 1 through 9, because mismatched rounding triggers a math-error notice.
Don’ts
- Don’t use the entity’s DBA or trade name in the header, because DOR matches on legal name only.
- Don’t include resident owners just to simplify, because IT-CR is for nonresidents only.
- Don’t forget to subtract Line 5 credits before computing Line 6, because doing so overstates tax due.
- Don’t email the return to DOR, because email submissions are not accepted for IT-CR.
- Don’t staple the paper return, because the DOR scanner rejects stapled pages.
- Don’t sign the return unless you are an officer, general partner, or member-manager, because other signatures are invalid.
Pros and Cons of Filing IT-CR vs. Individual Form 500s
Pros of filing IT-CR
- One filing instead of many — saves preparation cost, especially with five or more nonresidents.
- The entity handles tax payment, removing the burden from nonresident owners.
- Avoids withholding-and-true-up cycles under Form G2-A.
- Simplifies state-tax-paid documentation for owners’ home-state credits.
- Reduces the chance of nonresident owners forgetting to file Georgia altogether.
Cons of filing IT-CR
- Owners lose the ability to itemize Georgia deductions or claim personal exemptions.
- Owners cannot claim Georgia credits individually if the credit is not passed through on Line 5.
- Owners with Georgia losses on the composite return cannot receive a refund directly.
- The entity bears administrative responsibility and liability for errors.
- Composite tax rate is the flat individual rate, even when an owner’s marginal home rate would be lower.
Comparison of IT-CR Filing Channels
| Channel | Key Detail |
|---|---|
| Georgia Tax Center (GTC) | Free ACH debit, 4–6 week refund, instant confirmation |
| Paper mail to P.O. Box 740397 | 8–12 week refund, requires Certified Mail for proof |
| MeF via tax software | 24–48 hour acknowledgment, vendor fee, fastest refund |
FAQs
Is Form IT-CR required for every pass-through entity with nonresident owners?
No. It is elective. The entity may instead withhold under Form G2-A and let nonresidents file their own Georgia Form 500.
Can a resident owner be included on Schedule 1?
No. IT-CR is restricted to full-year nonresident owners under O.C.G.A. § 48-7-129; residents must file Form 500.
Do I write the entity’s DBA name or legal name in the header?
No. Use the legal name registered with the Georgia Secretary of State and matching the FEIN on file.
Does the standard deduction on Line 2 include corporate partners?
No. Only individual nonresidents qualify for the per-owner $12,000 standard deduction in 2025.
Is the Georgia tax rate on Line 4 the corporate or individual rate?
Yes — the individual flat rate of 5.39% for 2025 applies to all included owners regardless of entity type.
Can I e-file IT-CR through the Georgia Tax Center?
Yes. GTC supports direct entry and PDF upload, and approved software files via Georgia MeF.
Is an extension on Form IT-303 also an extension to pay?
No. It only extends the filing deadline. Pay any balance with Form IT-560C by the original due date.
Do I need to attach federal Schedules K-1 to IT-CR?
No — federal K-1s are not required to be attached, but keep them in the entity’s records for at least four years.
Can a nonresident owner included on IT-CR also file Form 500?
No. Inclusion on IT-CR bars individual filing for the same income. The owner must choose one path.
Is the Georgia withholding number the same as the FEIN?
No. It is a separate WH-prefixed account number issued through the Georgia Tax Center registration.
Do I use single-factor or three-factor apportionment on Schedule 2?
Yes — single-factor gross receipts only, with market-based sourcing for services under HB 1058.
Are Form G2-A withholding payments credited on Line 7?
No. G2-A withholding is credited on the individual owner’s Form 500, never on IT-CR Line 7.
Can I staple the paper return before mailing?
No. DOR’s scanner rejects stapled pages; use a paper clip or send loose pages.
Does IT-CR replace the entity’s Form 700 or 600S?
No. The entity still files its own Form 700 or Form 600S; IT-CR is filed in addition.
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