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Tennessee’s Business Tax updates & Disaster relief

Feb 1, 2024

We are reaching out to all of our Tennessee business clients regarding recent updates.

One topic is on Business Tax which is explained below.


Business tax is not something our firm has traditionally supported in the past. As we expand our services and products, we look for better ways to support our clients and Business Tax is a service we’ve identified through our client feedback that they would like us to support.


📢 The deadline for Tennessee’s Business Tax is approaching, and recently it was changed.


Please refer to this Business Tax Notice link below:⬇️



Business Tax Notice
.pdf
Download PDF • 89KB


For those who are unfamiliar with what this tax is, the Business Tax is a privilege tax levied upon those who do business by making sales of tangible personal property and/or services within Tennessee per jurisdiction.


The Business Tax is NOT to be confused with the Franchise and Excise Tax that is filed with your Federal Business Tax Return. Typically, Business Tax is due on the 15th day of the fourth month following the beginning of a taxpayer’s tax year (normally this is April 15th, but it can be different for fiscal year taxpayers).


The tax can be remitted by filing a business tax return through TNTAP and paying for a business license with respect to the following:


  • A taxpayer is required to purchase a Standard Business License for each jurisdiction in which they have at least $100,000 in annual gross receipts (used to be $10,000)


  • A taxpayer is required to purchase a Minimal Activity License for each jurisdiction in which they have at least $3,000 but less than $100,000 in annual gross receipts (used to be $3,000-$10,000)


Please bear in mind that you may need to purchase business licenses/pay for Business Tax for the state as well as any cities that have imposed tax in which you have met the aforementioned criteria for; however, not all cities have imposed the Business Tax


📑 A list of cities imposing Business Tax can be found here.



 

The IRS has declared certain counties within Tennessee as federally declared disaster zones.

Please refer to this IRS link below for details⬇️

IRS Tennessee taxpayers updates

This means that any federal tax owed or federal returns that were/are otherwise due between December 9th, 2023, and June 17th, 2024 are now due by June 17th, 2024 for those within the federally declared disaster zones. For affected individuals who would otherwise be paying their franchise and Excise tax during this time, the due date for the filing and payment of this tax has also been extended to June 17th, 2024.


If you would like to know more about whether you qualify for the Federal extension to file and pay, or if you’d like to know more, you may click here for more information.


If you'd like to know more about the Tennessee disaster extension, click here.


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