By: Jonathan Faught
In the past, Tennessee’s local governments administered the Tennessee business tax (gross receipts tax); however, under the new 2009 tax law changes, the Tennessee Department of Revenue (TDOR) will now administer this tax. The TDOR anticipates that the change will increase the amount of tax collected because of the state’s opportunity to look for delinquent and non-filing businesses by cross-referencing sales tax collections and other state administered taxes.
Assuming you are subject to the Tennessee business tax, but you have never filed a business tax return, you potentially owe the tax and penalties for prior years. If this is the case and you wait for the state to contact you, you would no longer be eligible to participate in the State’s voluntary disclosure agreement (VDA).
A voluntary disclosure agreement can significantly limit your exposure by limiting the look back period to three years (which is otherwise indefinite) and potentially reducing or eliminating penalties. We can help you determine if you owe the Tennessee business tax and help you seek a VDA with the state. The deadline to file for a VDA under this program is December 31, 2009.
Please contact Jonathan Faught or your KraftCPAs advisor for more information.
KraftCPAs is a public accounting (CPA) firm headquartered in Nashville, Tennessee providing tax preparation and planning services.
