Georgia Resident? Don’t Miss Your Opportunity to Retroactively Claim Georgia Tax Refund for Texas Franchise Taxes Paid

We are excited to announce a tax refund opportunity for Georgia individual residents holding interests in pass-thru entities that conduct business in Texas.

As you may be aware, in December 2014, the Georgia Tax Tribunal clarified that the Texas Franchise Tax is a tax “on or measured by income”.  This means an individual Georgia resident owning an interest in a pass-thru entity doing business in Texas is allowed to subtract a portion of pass-through income already taxed in Texas at the entity level. Just recently, the final issues of the case have been settled and the decision will not be appealed by the state of Georgia. As a result, if you have ownership in a pass-thru entity subject to the Texas Franchise Tax, and you are a Georgia resident, you have the potential to claim a refund for all years open under Georgia’s statute of limitations!

If you need guidance in taking advantage of this refund opportunity and filing amended tax returns for the qualifying years, contact your Cherry Bekaert representative or a member of the State & Local Tax Team.