Changes to F&E Tax are Taxpayer-Friendly

The Tennessee legislature recently passed, and the Governor has signed, new taxpayer-friendly amendments to the Tennessee Franchise and Excise tax statutes. The changes are effective for tax years beginning on or after January 1, 2017.   New Way to Make Quarterly Estimates For those taxpayers that must make quarterly Tennessee franchise/excise payments, there is a new method that the taxpayer may elect to calculate the amount of those payments.  For excise tax estimates, the Taxpayer may elect to compute estimates in the same manner provided by Section 6655(e)(2) of the Internal Revenue Code (the “annualized income installment method”).  This change provides a timing benefit to those taxpayers who receive more income at the end of the year and significantly less […]

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No Tennessee Property Tax Exemption for Beef Industry Real Property

On March 2, 2017, Administrative Judge Brook Thompson issued an “Initial Decision and Order” denying a property tax exemption to the Tennessee Beef Industry Council, Inc (the “Beef Council”) for a 0.53 acre tract of land improved with a 5,916 square foot office building located in Murfreesboro, Tennessee.  The link below shows a picture of the property via Google Earth: Link The Beef Council asserted that the property qualified for a property tax exemption under Tenn. Code Ann. §67-5-212(a)(1).  Tenn. Code Ann. §67-5-212(a)(1) provides a property tax exemption for property which is used by religious, charitable, scientific or nonprofit education institutions purely and exclusively for carrying out one of more of the exempt purposes for which the institution was created […]

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Are Software Related Transaction Fees Subject to Tennessee Sales and Use Tax?

In Letter Ruling 17-01, the Tennessee Department of Revenue (the “Department”) ruled on the taxability of software-related transaction fees.  This ruling illustrates that not all transaction-based fees are taxed the same for sales and use tax purposes.  Taxability of the fee depends on what the fee is for.  Fees charged for the license of software are taxable; fees charged for non-taxable services are not taxable. The Taxpayer (a Tennessee company) licenses voice-recognition software (“Software”) from an unrelated software provider (the “Provider”).  The Provider charges the Taxpayer a fee based on the number of reports the Taxpayer generates from using the Software.  The Taxpayer downloads the Software onto its servers located in Tennessee. The Taxpayer provides transcription and storage services to […]

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Due Date for 2016 Tennessee Tax Returns

The due date for Tennessee franchise/excise tax returns (for entities with a December 31 year-end), business tax returns, and Hall income tax returns is April 18, 2017. All of these returns may be filed online through the Tennessee Department of Revenue’s website at www.tn.gov/revenue. Click on “e-file and pay,” and choose the appropriate tax type to begin. Posted by Teresa Rankin Klenk

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Tennessee Department of Revenue Launches New Website

The Tennessee Department of Revenue launched a new web site this week called Tennessee Taxpayer Access Point (“TNTAP”).    The website will serve as a portal to a taxpayer’s Tennessee tax related information.  A taxpayer will be able to: Access account information, including account balances Send and receive secure messages to and from the Department of Revenue View correspondence View, print, file, and amend tax returns Make tax payments To access the site, a taxpayer must create a TNTAP login.  Information on how to create a log in is available here: https://revenue.support.tn.gov/hc/en-us/articles/115001044006-Creating-a-TNTAP-logon In addition, Tennessee tax professionals can also register for the site and thereafter gain access to client accounts.  Information on how to gain access to client accounts is here:  https://revenue.support.tn.gov/hc/en-us/articles/115000817126-I-am-a-CPA-or-tax-preparer-How-will-I-gain-access-to-my-clients-accounts- […]

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