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New professional privilege tax exemptions are effective June 1, 2020. Click here for more information.

Penalty Waivers

Penalties may be waived in delinquency or deficiency cases if the taxpayer has a reasonable cause that is listed in state statute (see Tenn. Code Ann Section 67-1-803(c) and (d)). Waivers can also be issued in delinquency cases if the taxpayer has a good two-year filing record with the Department, and no willful disregard of the law or gross negligence is involved. The Attorney General must approve a waiver of penalty of $100,000 or more.

Access your account by logging on the the Tennessee Taxpayer Access Point (TNTAP) and selecting Petition for Penalty Waiver for the following tax types:  

  • sales and use tax
  • business tax
  • franchise & excise tax
  • Hall income tax
  • consumer use tax
  • professional privilege tax
  • liquor-by-the-drink tax
  • tobacco taxes

For all other tax types, the taxpayer should submit the Petition for Waiver of Penalty  via email to penalty.waivers@tn.gov to request to waive a penalty.