Selecting Your Executor

When a family member dies, the person selected as the executor of the estate is often one of the largest causes of family discord.

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Spear Phishing Emails

The Internal Revenue Service recently instituted a ten-part “Don’t Take the Bait” awareness campaign regarding cybercriminal tactics.  Part One covers Spear Phishing Emails.  This post summarizes the IRS’s information on this topic.

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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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IRS Brings Back Private Collection Agencies

The IRS is now using four private collection agencies to assist in collecting overdue taxes from delinquent taxpayers.  The agencies are: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, New York; Performant of Livermore, California; and Pioneer of Horseheads, New York.  Here is how the new process will work: The IRS will send to the taxpayer a letter stating that it has assigned his or her account to a private collection agency (“PCA”). The letter will give the name and contact information for the PCA.  The designated PCA will send a letter to the taxpayer confirming that the IRS has transferred the taxpayer’s account to the PCA. After that, the PCA may contact the taxpayer by phone and mail […]

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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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Redesign of Tennessee Department of Revenue Blanket Certificates of Resale and Exemption Certificates

On March 8, 2017, the Tennessee Department of Revenue announced that it redesigned its blanket certificates of resale and sales tax exemption certificates.  Old certificates previously issued by the Department of Revenue are still valid as long as the expiration date has not passed. 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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Reminder: Internet Purchases ARE Subject to Sales/Use Tax in TN

On March 4th, the Tennessee Department of Revenue published a new Frequently Asked Question on its website to address whether items purchased from the internet and delivered to a Tennessee address are subject to sales or use tax.  The Department says that if the seller ships the items to a Tennessee address and does not charge Tennessee sales tax, then the purchaser must pay Tennessee use tax.  They include a helpful link to the consumer use tax return. Taxpayers that owe use tax must file the use tax return and pay the tax at least annually but may choose to file and pay more frequently. Here is the  FAQ as published: Question:  Are sales made on the Internet subject to […]

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