Tennessee Institutes Electronic Filing Requirements

Tennessee is requiring certain sales and use tax returns, certain franchise and excise tax returns, and all professional privilege tax returns to be filed electronically beginning January 1, 2013.

Under Tennessee Public Chapter 657 (2012), "[t]he commissioner is authorized to require that any return, report, claim, statement, application, or other document filed with the department, including any payment or remittance that accompanies such document, be submitted electronically...."

Effective January 1, 2012, electronic filing and Electronic Funds Transfer (EFT) is required for the following:

1. Franchise and Excise Tax: All "franchise and excise tax returns prepared using a software program certified by the Department of Revenue… ."
2. Sales and Use Tax: "All sales tax taxpayers with an average tax liability of $500 or more… ."
3. Professional Privilege Tax: "All professional privilege tax returns… ."

The new requirements will increase efficiency and provide cost savings to the state of Tennessee.

Additional information is available at the Tennessee Department of Revenue.