Tennessee Franchise Tax: Refund Claim Filing Deadline December 2nd

On May 10, 2024, Governor Bill Lee signed Public Chapter 950 (2024). This legislative action resulted in eliminating the property measure (Schedule G) from the Tennessee franchise tax calculation for tax years beginning on or after January 1, 2024. Going forward, taxpayers will calculate franchise tax solely based on the taxpayer's apportioned net worth.

In addition to the repeal of the property measure, the new law allows the Department of Revenue to issue franchise tax refunds to taxpayers who paid the franchise tax on Schedule G for tax years ending on or after March 31, 2020, for which a return was filed with the DOR on or after January 1, 2021. For calendar year taxpayers, this would include tax years 2020 through 2023.

The filing period for refund claims was originally November 30, 2024. However, November 30^th falls on a weekend, so the final deadline for submitting amended returns and refund claims is Monday, December 2, 2024. It is crucial that taxpayers submit their claims by this date, as any claims filed after December 2 will not be eligible for a refund.

The Tennessee Department of Revenue has created a dedicated website for information related to this limited time refund opportunity. Frequently asked questions, forms, and an instructional webinar can be found at: https://www.tn.gov/revenue/2024franchisetax.html.

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