Tennessee Sales Tax Guide
Chapter 7: How to manage late Tennessee sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Tennessee sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Tennessee sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Tennessee Department of Revenue?
Late Tennessee sales tax return filing or payment will result in a penalty of 5% of the outstanding tax liability for each 1 to 30 day period during which the tax remains outstanding. The penalty is capped at a maximum of 25% of the outstanding tax liability. The minimum penalty is $15 regardless of whether any tax was due.
The Tennessee Department of Revenue reserves the right to charge interest on any outstanding tax liability at an annual rate of 7.25%, assessed daily.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Tennessee Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Tennessee sales and use tax liability.