2010 Tennessee Code
Title 67 - Taxes And Licenses
Chapter 4 - Privilege and Excise Taxes
Part 20 - Excise Tax Law
67-4-2015 - Filing of returns Payment of tax Penalty.

67-4-2015. Filing of returns Payment of tax Penalty.

(a)  The franchise and excise tax return shall be filed with the commissioner on or before the fifteenth day of the fourth month following the close of the taxpayer's taxable year. The return shall coincide with the accounting period covered by the federal return and the appropriate tax must be paid to the department at the time of filing the return. In the event the return covers a period of less than twelve (12) months, the excise tax shall not be prorated.

(b)  Every taxpayer, who has a combined franchise and excise tax liability of five thousand dollars ($5,000) or more for the current tax year, shall make four (4) equal quarterly estimated franchise and excise tax payments for its current tax year. A taxpayer electing to compute its net worth on a consolidated basis shall compute its quarterly estimated franchise and excise tax payments taking into consideration that its net worth will be computed on a consolidated basis. The minimum amount of each quarterly payment shall be the lesser of:

     (1)  Twenty-five percent (25%) of the combined franchise and excise tax shown on the tax return for the preceding tax year, annualized if the preceding tax year was for less than twelve (12) months; or

     (2)  Twenty-five percent (25%) of one hundred percent (100%) of the combined franchise and excise tax liability for the current tax year.

(c)  The first quarterly payment shall be due on the fifteenth day of the fourth month of the current tax year; the second payment on the fifteenth day of the sixth month; the third payment on the fifteenth day of the ninth month; and the final payment on the fifteenth day of the first month of the next succeeding tax year.

(d)  If there is a deficiency or delinquency of any quarterly estimated tax payment required, a penalty in the amount of five percent (5%) for each month of underpayment or part thereof not to exceed a total of twenty-five percent (25%) and interest at the rate prescribed by § 67-1-801 shall be assessed. Notwithstanding any provision of law to the contrary, a taxpayer that has timely made four (4) quarterly estimated franchise and excise tax payments, each of which equals at least twenty-five percent (25%) of the current year's franchise and excise tax liability, shall not be assessed a deficiency penalty with regard to any quarterly payment.

(e)  The period of underpayment of any required quarterly estimated franchise and excise tax payment shall extend from the date the payment was required to be paid to the earlier of:

     (1)  The fifteenth day of the fourth month following the close of the taxable year; or

     (2)  With respect to all or any portion of the underpayment, the date on which all or any portion of the underpayment is paid.

(f)  A quarterly payment of estimated franchise and excise tax on any installment date shall be considered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment payable for that date.

(g)  (1)  An extension of time of six (6) months in which to file the franchise and excise tax return shall be granted; provided, however, that on or before the original due date of the return, the taxpayer has paid franchise and excise taxes equal to ninety percent (90%) of the liability for the tax year for which the extension is being requested, and the extension request is made as required in subdivision (g)(2). A taxpayer electing to compute its net worth on a consolidated basis shall make its franchise, excise tax extension request and compute the payment thereon taking into consideration that its net worth will be computed on a consolidated basis. Where the taxes paid on or before the original due date of the return do not equal ninety percent (90%) of the liability for the tax year for which the extension is being requested, or, if the return is not filed by the extended due date, penalty as provided by § 67-1-804 and interest as provided by § 67-1-801(a) shall attach as though no extension had been granted.

     (2)  An extension request shall be made as follows:

          (A)  If the taxpayer is not required to make a tax payment with its extension request, the taxpayer may use either a form prescribed by the commissioner or a copy of the taxpayer's request for an automatic extension of time to file its federal income tax return for the corresponding tax period. The form shall not be filed on the original due date of the return but, instead, shall be attached to the return filed on or before the extended due date;

          (B)  If the taxpayer is required to make a tax payment with its extension request and the taxpayer does not file its federal income tax return as a member of a consolidated group, the taxpayer may use either a form prescribed by the commissioner or a copy of the taxpayer's request for an automatic extension of time to file its federal income tax return for the corresponding tax period. The form shall be filed with the tax payment on or before the original due date of the return; and

          (C)  If the taxpayer is required to make a tax payment with its extension request and the taxpayer files its federal income tax return as a member of a consolidated group, the taxpayer must use a form prescribed by the commissioner. The form shall be filed with the tax payment on or before the original due date of the return.

[Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 23-25; 2003, ch. 164, §§ 1, 2; 2004, ch. 786, § 2; 2004, ch. 932, §§ 2, 3; 2005, ch. 499, § 79.]