tn fae 170 instructions 2023

Sections and Schedules Included

Form FAE 170 comprises multiple sections and schedules to ensure comprehensive tax reporting. Key sections include business identification, income, and net worth calculations. Schedule C is designated for computing total tax liability or overpayments, while Schedule G handles elections and specific tax credits. Schedule I, introduced for tax years ending in 2024 or later, addresses new requirements for disregarded entities. Additional schedules cover apportionment, loss carryovers, and industrial machinery tax credits. Each section is designed to guide taxpayers through detailed computations and ensure accurate reporting of franchise and excise taxes, making the form user-friendly and compliance-oriented for Tennessee businesses.

Filing Requirements and Deadlines

The 2023 FAE 170 must be filed by April 16, 2024, with a minimum franchise tax of $100 and a 0.25% tax rate on the base.

Who Needs to File Form FAE 170?

Form FAE 170 must be filed by corporations, limited liability companies (LLCs), and other business entities conducting operations in Tennessee. This includes single-member LLCs taxed as disregarded entities and businesses with a physical presence or economic nexus in the state. The requirement applies to for-profit entities subject to Tennessee’s franchise and excise taxes, with thresholds based on net worth and income. Non-profit organizations and certain exemptions may apply, but most businesses meeting the state’s criteria must submit this form annually.

Key Filing Deadlines for 2023

The deadline for filing Form FAE 170 for the 2023 tax year is April 16, 2024. This applies to both franchise and excise taxes. Businesses can request an extension, but the extended deadline is typically six months from the original due date. Payments made after the deadline may incur penalties and interest. For tax periods beginning on or after January 1, 2023, all submissions must be made electronically through the Tennessee Taxpayer Access Point (TNTAP). Ensure timely filing to avoid late fees and maintain compliance with Tennessee state tax regulations.

Consequences of Missing Deadlines

Missing the filing deadline for Form FAE 170 can result in penalties and interest on the unpaid tax. A late filing penalty of 5% of the unpaid tax may be applied, with an additional 7% interest per month on the outstanding balance. These penalties and interest accrue until the tax is paid in full. If the taxpayer is unable to pay the full amount by the deadline, an installment agreement can be requested, but penalties and interest will continue to accumulate. Failure to file or pay on time may also result in the loss of eligible tax credits. The Tennessee Department of Revenue may pursue collection actions if taxes remain unpaid. Ensure timely filing to avoid these consequences.

Step-by-Step Filing Guide

Start by gathering necessary documents, including financial records and prior returns. Complete Form FAE 170 online via TNTAP, calculate tax liability, and submit payment by the deadline.

Gathering Necessary Documents

To accurately complete Form FAE 170, gather essential documents, including financial statements, tax returns, and records of business income and expenses. Ensure you have prior-year returns for reference and any relevant schedules, such as Schedule C for tax computations. Collect information on franchise and excise tax credits, apportionment data, and details on disregarded entities if applicable. Verify the accuracy of your business structure, net worth, and income calculations. Check for any new requirements, such as Schedule I for certain taxpayers. Consult the Tennessee Department of Revenue’s official guidelines to ensure all required documents are prepared and organized before initiating the filing process.

Completing the Form Online via TNTAP

Access the Tennessee Taxpayer Access Point (TNTAP) to complete Form FAE 170 online. Create or log in to your TNTAP account, navigate to the franchise and excise tax section, and select the appropriate tax year. Enter business details, income, and net worth calculations, ensuring accuracy. Utilize TNTAP’s built-in tools for tax liability and credit computations. Attach required schedules and supporting documents electronically. Review the form for errors, submit, and retain a confirmation receipt. TNTAP streamlines the filing process, reduces errors, and offers secure payment options for taxes due.

Calculating Tax Liability and Credits

Calculate franchise tax liability using the greater of Tennessee net worth or income measures. The franchise tax rate is 0.25% of the tax base, with a minimum tax of $100. Excise tax is 6.5% of taxable income. Credits, such as job tax credits and industrial machinery tax credits, reduce total liability. Use Schedule C to compute total tax due or overpayment. Ensure accurate calculations by referencing the Tennessee Department of Revenue’s updated 2023 manual. New requirements, including Schedule I for certain entities, must be considered for tax years ending in 2024 and beyond. Verify all computations before filing to avoid penalties.

Schedules and Attachments

Key schedules include C for tax computation, G for elections, and I for new 2024 requirements. Attachments like Schedule PL and FAE 172 support accurate filings and compliance.

Schedule C: Computation of Total Tax Due or Overpayment

Schedule C is essential for calculating the total franchise and excise tax liability or overpayment. It requires adding franchise tax (Line 3) and excise tax (Line 7), then subtracting credits (Line 5). The result on Line 8 determines if taxes are owed or a refund is due. Accurate computation ensures compliance with Tennessee tax laws.

Additionally, Schedule C includes sections for reporting overpayments and requesting refunds. Properly completing this schedule ensures businesses accurately reconcile their tax obligations for the year. Ensure all calculations align with provided data to avoid discrepancies.

Schedule G: Election Form and Instructions

Schedule G allows businesses to make specific elections related to their franchise and excise tax filings. It is used to elect methods for apportioning income or net worth, such as the triple-weighted sales factor. Recent updates require taxpayers to report elections for franchise tax liability based on apportioned net worth. The schedule also includes instructions for completing elections and ensuring compliance with Tennessee tax laws. Proper completion of Schedule G is critical for accurate tax calculations and avoiding penalties. Businesses should review the updated Franchise and Excise Tax Manual for detailed guidance on making elections.

Schedule I: New Requirements for 2024 and Beyond

Schedule I is a new addition to the TN FAE 170 and FAE 174 return packages, effective for tax years ending on or after December 31, 2024. It is required for taxpayers whose FAE 170 includes disregarded entities, such as single-member LLCs. The schedule collects specific information to ensure compliance with updated tax regulations. The Tennessee Department of Revenue has updated its Franchise and Excise Tax Manual (Chapter 5, starting on page 106) to provide detailed guidance on completing Schedule I. Taxpayers must carefully review these instructions to ensure accurate reporting and avoid penalties. This schedule reflects Tennessee’s efforts to align tax reporting with federal requirements.

Electronic Filing and Payment Options

Tennessee’s TNTAP platform allows businesses to file Form FAE 170 and make payments electronically, ensuring efficient and accurate tax submissions. Tax software integration further streamlines the process.

Using TNTAP for Electronic Submission

TNTAP, Tennessee’s online tax filing platform, allows businesses to securely submit Form FAE 170 and related schedules electronically. To use TNTAP, users must first create an account and complete the registration process. Once logged in, filers can access the FAE 170 form, input required data, and upload necessary documentation. The system offers real-time validation to ensure accuracy and compliance with state tax requirements. Payments can also be made through TNTAP via electronic check or credit card. This method streamlines the filing process, reduces errors, and provides a record of submission. It is the recommended option for efficient and timely compliance with franchise and excise tax obligations.

Payment Methods for Franchise and Excise Taxes

Tennessee offers multiple payment methods for franchise and excise taxes. Electronic payments can be made via TNTAP using a credit card or electronic check. A convenience fee applies to credit card transactions, while electronic checks are free. Paper checks are also accepted and must be payable to the Tennessee Department of Revenue. Include the tax year, business name, and account ID on the check. Payments can be mailed to the address listed in the instructions. For accurate processing, ensure all payment details align with the submitted FAE 170 form. Timely payment avoids penalties and ensures compliance with state tax requirements.

Troubleshooting Common E-Filing Issues

Common e-filing issues for TN FAE 170 include login errors, form validation problems, and payment processing delays. Ensure your TNTAP account is up-to-date and verify all data entries for accuracy. Clear your browser cache or try a different browser if login issues persist. For payment delays, confirm bank details and check TNTAP for transaction status updates. If issues remain unresolved, contact the Tennessee Department of Revenue support team via phone or email. Always ensure a stable internet connection and avoid submitting forms during peak hours. Refer to TNTAP’s help section for step-by-step troubleshooting guides and system status updates.

Amended Returns and Adjustments

To indicate an amended return, select “Amended Return” in the Tennessee return menu. Ensure accurate documentation and allow 90 days for processing. Contact support for unresolved issues.