We have been monitoring the legislative and legal developments regarding Tennessee’s Franchise 税 Property Factor since the beginning of the year, 我们很高兴在5月10日与大家分享, Governor Bill Lee signed a new law into effect eliminating the Property measurement from the Franchise 税 Base. 

The Department of Revenue recommended this action to legislators in light of dozens of lawsuits (including a large one from Toyota) that have been filed questioning the legality of the mechanics of the effective assessments on Tennessee 税payers.
This new law repeals the Property measurement prospectively and allows for a refund process by statute for the 2020 through 2023 tax years. We have been data-mining our client information and are reaching out to share what this process will look like and help you determine your next steps as we process refunds for our client base.

下一个步骤

We are starting to process these amended returns and the required claims for refunds that must follow for our clients.

您的注册会计师将与您的暂定金额联系. 如果你想让我们帮你加快流程，请 点击这里, and we will have a team member reach out with a quick reply with more details and an analysis of your numbers.

We will be sending cover and engagement letters for you to authorize us to process any refunds on your behalf. We will then work the process from beginning to end in our Practitioner TNTAP login with the Department of Revenue and provide confirmation post completion for our clients. The complete refund process will require multiple touches from our team over several days with the Department of Revenue. 我们还必须提交2023年田纳西州的纳税申报表, as the law was written at the time prior to processing amended returns and requests for refunds. So, it may make sense to do the refund process twice if your 2023 Return is not complete in order to process 2020 through 2022 now. 

我们的目标是在8月15日之前完成大部分索赔. The Tennessee Department of Revenue will take some time to process all these for hundreds of thousands of taxpayers, and will start paying interest at a reduced rate after the refund has been outstanding for 90 days. 所以请不要期待下周的退款!

这对你意味着什么

This new law may allow you to claim a refund if your Property factor was higher than your Net Worth factor for previous year’s TN FAE 170 税 filings. We are analyzing all our client’s data and calculating tentative refund amounts and will be reaching out individually to you with your respective number. 
作为你的注册会计师, we are ready to start filing these Amended Returns and Claims for Refunds to help you secure these potential dollars if you are benefiting from the law.

It is important to understand that as part of this legislation and taking advantage of the limited refund opportunity, 你放弃了在2020年之前获得历史退款的权利, 并放弃其他权利，包括潜在的利益或救济.

对大多数泰米尔纳德邦纳税人来说, the economic reality of the costs and hazards of litigation in pursuing a higher benefit are too great, 结果就是, most companies will be pursuing this limited refund opportunity (refund limited to the years 2020-2023) versus seeking further benefits through the legal system (seeking refunds for years prior to 2020 and/or interest). If we believe you should consider an alternative to Tennessee’s preferred approach of this limited refund (years 2020-2023), 我们会和你讨论这个问题. 在一般情况下, 如果你付的钱少于25美元,000 a year in Franchise 税 based on the Property Factor and your entity Net Worth is a significantly lower factor, 追求有限的退款是有意义的.

作为参与有限退款机会的一部分, 1) your company name will appear on the TN Department of Revenue's website for a limited amount of time, 2)您在知情的情况下放弃在任何法院的所有索赔和诉讼权利, 州的或联邦的, 控告田纳西州税务局, 税务局局长, 田纳西州, or its employees based on any theory that the franchise tax is unconstitutional by failing the internal consistency test. 我们还没有听到任何客户对这一披露表示严重担忧, 因为它只是披露了公司名称和退款金额的范围.

申请退款必须在2024年5月15日至11月30日之间提交. After November 30, this program will close permanently and the opportunity will pass. 

If you are curious as you wait to hear from your CPA with your tentative refund amounts, 您可以查看TN FAE170(田纳西特许经营权)的第2行 & 消费税申报表). If this line is greater than Line 1 and Line 3 is more than $100, you are eligible for a refund. The amount of the refund, in some cases, may be as much as the amount shown on Line 3 minus $100. 然而, 如果第一行大于$0, 2号线大于1号线, 你还是可以退款的, but it will be the difference between the Franchise 税 on the old Property factor that has been repealed and the Franchise 税 on the sustained Net Worth factor. 我们现在正在为你做这件事.

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