FRANCHISE TAX

Franchise Tax Refunds in Tennessee - June, 2024

ATTENTION ALL TENNESSEE OWNERS WHO PAY FRANCHISE TAX

As many of you may know, the State of TN Department of Revenue has opened up a claim period to apply for a tax refund – specifically aimed at the Franchise tax. TNSSA would like to remind you to take notice and apply, should you be eligible for a refund. We have heard of many success stories from owners who have applied and been granted significant refund checks.

Below is a summary directly from TN Department of Revenue website. Don’t miss this opportunity!!

On May 10, 2024, Governor Bill Lee signed Public Chapter 950 (2024), which eliminates the property measure from the franchise tax calculation and authorizes the Department of Revenue to issue franchise tax refunds to eligible taxpayers. Taxpayers who paid the franchise tax on the property measure using Schedule G for tax years ending on or after March 31, 2020, for which a return was filed with the department on or after January 1, 2021, are eligible for a refund.

To obtain a refund, eligible taxpayers must amend their franchise and excise tax returns for all eligible tax periods and file a Claim for Refund of Franchise Tax Paid on Property Measure (Schedule G) form. Both the amended returns and the refund claim form must be submitted by November 30, 2024.

The Department of Revenue has sent letters via U.S. Mail to taxpayers who are potentially eligible for these refunds. Regardless of whether you receive a letter, the department encourages taxpayers to review their records and/or consult a tax professional to determine if they qualify for a refund. The department has also created a website with frequently asked questions, a recorded webinar with a demo on how to file your refund claim , and other resources to assist taxpayers.

“We encourage eligible taxpayers to file for these refunds as soon as possible,” Revenue Commissioner David Gerregano said. “Electronic filing of claims is recommended, as it may expedite the process.”