Penalties and Interest
Tenn Code Annotated § 67-1-801(b)(1) states that interest shall be added to the amount of refund or credit due at this time
What is?
Beginning forty-five (45) days from the date the commissioner receives proper proof to verify that the refund or credit is due and payable.
Net operating losses may be carried over for this amount of time
What is?
15 years
Although federal income revisions can impact both the franchise and excise tax, the FIRs typically impact this tax type
What is?
Excise tax
Taxpayers who are not on a consolidated net worth basis will report new worth on this schedule
What is?
Schedule F1
The standard jobs tax credit per each new Tennessee job created is this amount
What is?
$4,500
In order to avoid this, a taxpayer must make timely quarterly estimated franchise and excise tax payments
What is?
A deficiency penalty
Most taxpayers will use the standard apportionment formula as reported on this schedule
What is?
Schedule N
The period dates at the top of the franchise and excise tax returns, Forms FAE 170 and FAE 174, should correspond this
What is?
The federal income tax return period dates
This credit is generally 1% of the purchase price of the industrial machinery
What is?
The industrial machinery credit
Taxpayers located in Tier 1 or 2 enhancement counties have this amount of time to create the minimum required number of jobs
What is?
Three years
According to Tenn. Code Ann. § 67- 1-803(a)(2)(B), the Department is prohibited to waive this.
Interest
Taxpayers are required to make these when there is a combined franchise and excise tax liability of $5,000 or more (after applicable tax credits) for both the prior tax year and the current tax year
What are?
Estimated payments
The Department must assess any additional tax due within this timeframe of being notified by the taxpayer of changes made to its net income as the result of an IRS examination
What is?
Within two years of being notified by the taxpayer
Property that is considered this is not included in the franchise tax base, as computed on Schedule G, nor is it shown as a deduction on Schedule G.
What is?
Construction in Progress (CIP)
An investment of $500,000 in real property, tangible personal property, or computer software owned or leased in this state is called this
What is?
Required capital investment
If a taxpayer does not file its return or files late, or if a taxpayer does not timely pay the tax due, this will be assessed
What is?
A delinquency penalty
5% of this type of income is subject to excise tax. It is reported as an addition on Schedule J.
What is?
Global Intangible Low Taxed Income (GILTI)
A SMLLC owned by a corporation is considered this for federal tax purposes, it is not subject to franchise and excise tax
What is?
A disregarded entity
An entity that has no property, payroll or sales in TN is not to this even if they are registered with the TN Secretary of State.
What are?
Franchise & excise tax
Effective for tax years ending on or after July 1, 2016, taxpayers located in Tier 3 or 4 enhancement counties have this amount of time to create the minimum required number of jobs
What is?
Five years
This applies to any taxes not paid by the date required by law, even if the Department grants a filing extension.
What is?
Interest
This is a privilege tax imposed on entities for the privilege of doing business in Tennessee
What is?
Franchise tax
The Department must assess the additional tax on or before this date if a taxpayer files an amended return on June 19, 2022, to report FIRs for the period ended December 31, 2016.
What is?
June 18, 2024
Amounts subject to self-employment tax may be deducted by which types of entities
What are?
SMLLCs and partnerships
Jobs tax credit is claimed on this schedule
What is?
Schedule X