Business tax returns will be due the 15th day of the fourth month after the business' fiscal year end. For example, a taxpayer with a fiscal year ending September 30, 2013, will file its business tax return by January 15, 2014. Likewise, a business with a December 31, 2013, fiscal year end will file its business tax return by April 15, 2014.
During the transition from the current filing schedule to the new filing schedule, some taxpayers will be filing for a tax period that's either longer or shorter than 12 months. Any taxpayer who owes the minimum tax will prorate the tax for any period other than 12 months.
See this chart to see a list of business' fiscal year end dates along with their corresponding tax filing dates.
In early December, the Department will begin mailing letters to taxpayers, starting with businesses with fiscal year ends in September, October or November.
The letter will provide each business with the opportunity to review the accuracy of the tax information the Department has on file, and it will advise the business when the tax returns are due and for what period. The letter will also explain how to compute the personal property tax credit, and it will also tell the taxpayer the period for which the business needs to report all gross receipts.
You can find a chart of how to compute the personal property tax credit here.
Businesses with between $3,000 and $10,000 in gross receipts during the tax year must obtain a minimal activity license annually for $15 from the local county and/or municipal clerk. Businesses with less than $3,000 in gross receipts per year may pay the $15 fee and get a minimal activity business license if they would like to, but it is not required.
For example, a business with $5,000 in gross receipts located in Murfreesboro, which is in Rutherford County, would have to obtain a minimal activity business license both from the city as well as the county. Alternatively, the taxpayer could pay for and print the minimal activity business license online, using the Department of Revenue's website.
Yes. Starting in 2014, all businesses licenses will expire 30 days after the due date of the tax return for the current period. For example, if a business' tax period ends on December 31, the due date for the return and payment is April 15th of the following year, and the business' current license expires on May 15th of the following year.
Clay, Claiborne and Morgan counties will now have a business tax (these three counties previously did not impose the tax), and Hardin, McNairy and Lauderdale counties will go to the standard state rate (previously, these counties imposed business tax at a reduced rate).