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.
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
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
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.
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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.