How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Tax.appeal.168 Your Own Question

Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 2562
Experience:  Nearly 30 years of varied tax industry exp. Tax Biz owner
58285678
Type Your Tax Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

Hi- I just received notification that my business is being

Customer Question

Hi- I just received notification that my business is being audited for franchise/excise tax. Can you please explain to me what that is? Is it as detailed as a sales tax audit?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.
Welcome. Thank you for choosing us to assist you. My name is XXXXX XXXXX my goal is to help make YOUR life, a little...LESS taxing.

Q: Can you please explain to me what that is?

A: Franchise and excise taxes are privilege taxes imposed on each corporation, limited partnership, limited liability company and business trust chartered/organized in Tennessee or doing business in this state.

 

Due Dates:


Annual - 15th day of the 4th month following the close of your books and records.
Quarterly estimated payments - 15th day of the fourth, sixth, and ninth months of the current tax year and the 15th day of the first month of the next succeeding tax year.


Extension - 6-month extension upon request


Tax Rates:


Franchise tax - .25% of the greater of net worth or real and tangible property in Tennessee. The minimum tax is $100.


Excise tax - 6.5% of Tennessee taxable income

 

REFERENCE SOURCE:

 

http://www.tn.gov/revenue/tntaxes/fae.shtml

 

----------------------------------------

 

Q: Is it as detailed as a sales tax audit?

 

A: I would say that this audit would not be as detailed as a sales audit. Though in a different state, I've dealt with a sales tax audit before and that is quite tedious. Based on the type of tax that is involved in your case, I would venture to say that no this type of audit will not be as detailed or tedious as a sales tax audit.

 

Please let me know if I can be of further assistance to you regarding this matter.

 

As we know that you have choices, we thank you for choosing this Q&A service today.

Customer: replied 1 year ago.


Thank you. What type of documentation do you think they would want to see for this and how long would this type of Audit take? I am having my CPA represent me, but because tax extensions are due this week, he has not had a lot of time to spend with me regarding it.

Expert:  Tax.appeal.168 replied 1 year ago.
Hello again, you are welcome.

Q; What type of documentation do you think they would want to see for this and how long would this type of Audit take?

A: For the Franchise tax portion of the audit, there really should be no documentation needed, as this is tax that you pay for the privilege of being able to have a corporation in the state. As for the Excise tax, they will likely ask to see income documents, (client invoices, accounts receivables, bank statements, things of that nature). As for how long this audit will take, I would only be taking a wild guess, therefore I can't really say for certain. I would say at the very least 2-4 weeks. If your CPA doesn't have time to deal with the matter now, he/she can possibly request that the audit be postponed. In most cases taxing agencies will grant a postponement if there is reasonable cause. Reasonable cause in this case is the fact that extension deadline dates are rolling around and your CPA simple can't deal with the matter right now.
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 2562
Experience: Nearly 30 years of varied tax industry exp. Tax Biz owner
Tax.appeal.168 and 3 other Tax Specialists are ready to help you
Expert:  Tax.appeal.168 replied 1 year ago.
Thank you for the positive rating and generous bonus. I do appreciate it.

Feel free to check back with me in the future should you have other tax or finance related questions. My username is Tax.appeal.168. Even if prompted to do so, there is no need to respond to this post.

Again, as we know that you have choices, we thank you for using this Q&A service this evening. Have a pleasant weekend.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.