Hey ,

I am writing to inform you about recent developments regarding Tennessee's franchise and excise taxes, specifically potential refunds for certain businesses.

Background:

• Tennessee businesses pay franchise and excise taxes. The franchise tax can be calculated based on either apportioned net worth or the book value of real and tangible personal property owned in the state.
• The constitutionality of the latter option (property-based measure) is under legal challenge.

Proposed Legislation:

• Governor Lee has proposed legislation to repeal the property-based measure and potentially provide refunds for any excess taxes paid under it.
• House Bill 1893 details the proposed changes, including:
  • Deleting the property-based measure.
  • Authorizing tax refunds based on claims filed with the Commissioner.
  • Allowing refund claims for past years if based on the constitutionality challenge.

Next Steps:

• While the legislation is still in progress, it's worth considering its potential impact on your business.
• If passed with refund provisions, claims must be filed within specific timeframes using a special form.
• We recommend waiting to see how the legislative process unfolds before filing claims. Filing protective claims for 2021 returns is possible until December 31, 2024.

I will continue to monitor the situation and provide updates as information becomes available.

If you have any burning questions regarding this current tax season, please feel free to contact me using the details below or visit my website, where I post several blog posts that can answer your questions.

Your favorite tax professional, 

Folasade,

(202) 618-1295

[email protected] 

Hey Entrepreneur! I am Folasade Ayegbusi. I am an Enrolled Agent, Accountant, Ex-insurance Broker, Speaker, and Small Business Growth Strategist. Additionally, I am a Mother, and Entrepreneur.

I have helped entrepreneurs and small business owners save over $25 million dollars in lost revenue, tax assessments, penalties, and interests over the last 12 months. I am confident that I can assist you with all of your accounting needs.