For many years, the underpayment interest rate with respect to Georgia tax deficiencies has been one percent (1%) per month. This rate is excessive and, in substance, amounts to a substantial penalty. The IRS currently charges 3 percent annual interest, and it has been charging 3 or 4 percent for many years.
Georgia has a thorough penalty scheme, similar to the federal penalty scheme found in the Internal Revenue Code.
Recently, I asked my State House representative, Rich Golick, to sponsor a bill to reduce the rate to a market rate —perhaps using the rate that the IRS uses. He is currently analyzing the matter.
