Download Tennessee Fae 172 Template in PDF Open Editor Here

Download Tennessee Fae 172 Template in PDF

The Tennessee FAE 172 form is a declaration used by taxpayers to report their quarterly franchise and excise tax liabilities. Taxpayers with an estimated liability of $5,000 or more must submit this form and make quarterly payments throughout the year. Understanding the requirements and deadlines associated with the FAE 172 is essential for compliance and avoiding penalties.

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Understanding the Tennessee FAE 172 form is crucial for taxpayers with a franchise and excise tax liability of $5,000 or more. This form serves as a quarterly declaration for estimated tax payments, ensuring that businesses stay compliant with state tax regulations. Each year, taxpayers must make four estimated payments, with deadlines falling on the 15th day of the fourth, sixth, and ninth months of the current tax year, and the first month of the following year. The form requires taxpayers to calculate their estimated tax liability, taking into account any applicable credits and prior year overpayments. It's essential to remember that payments should be rounded to the nearest dollar and submitted using the pre-numbered vouchers provided by the Tennessee Department of Revenue. Additionally, late or underpaid installments may incur penalties and interest, making timely submissions all the more important. By grasping the key elements of the FAE 172 form, taxpayers can navigate their obligations more effectively and avoid unnecessary complications.

FAQ

  1. Who is required to file the Tennessee FAE 172 form?

    Taxpayers who expect to have a combined franchise and excise tax liability of $5,000 or more for the current tax year must file the Tennessee FAE 172 form. This includes businesses and individuals who meet the specified threshold for tax liability.

  2. When are the estimated tax payments due?

    Estimated tax payments must be made quarterly. The due dates are as follows:

    • 1st payment - 15th day of the 4th month of the current taxable year
    • 2nd payment - 15th day of the 6th month of the current taxable year
    • 3rd payment - 15th day of the 9th month of the current taxable year
    • 4th payment - 15th day of the 1st month of the subsequent taxable year
  3. What is the minimum required payment for each quarter?

    The minimum amount for each quarterly payment is determined by the lesser of the following:

    • 25% of the combined franchise and excise tax shown on the tax return for the preceding year, annualized if that year was less than twelve months
    • 25% of 100% of the combined franchise and excise tax liability for the current year
  4. What happens if a payment is late or underpaid?

    If a payment is late or underpaid, a penalty of 5% per month may be imposed, up to a maximum of 25%. Additionally, interest at the current annual rate will accrue. This penalty and interest are calculated from the due date of the installment until the payment is made or until the fifteenth day of the fourth month following the close of the taxable year.

  5. What should I do if I received a preaddressed packet?

    If you received a preaddressed packet from the Tennessee Department of Revenue, it is important to use the prenumbered vouchers and envelopes provided. This will help expedite the processing of your estimated payments and ensure that your payments are properly recorded.

  6. Where do I send my payment?

    Payments should be made payable to the Tennessee Department of Revenue. You can mail your payment to the following address:

    Tennessee Department of Revenue
    Andrew Jackson State Office Building
    500 Deaderick Street
    Nashville, TN 37242

Common PDF Forms

Documents used along the form

The Tennessee FAE 172 form is an important document for taxpayers who have a franchise and excise tax liability of $5,000 or more. However, several other forms and documents are often used in conjunction with this form to ensure compliance and accurate reporting. Below are a few key documents that you may encounter.

  • Tennessee Franchise and Excise Tax Return (Form FAE 170): This is the annual tax return that businesses must file to report their total franchise and excise tax liability for the year. It summarizes the business's financial activities and determines the final tax owed after accounting for any estimated payments made throughout the year.
  • Tennessee Estimated Tax Payment Voucher (Form FAE 172V): This voucher is used to submit quarterly estimated tax payments. Taxpayers fill out this form to indicate the amount they are paying and send it along with their payment to the Department of Revenue.
  • Mobile Home Bill of Sale: A crucial document for the transfer of ownership of mobile homes, which can be facilitated by utilizing templates such as those found at Ohio Documents Online.
  • Franchise and Excise Tax Credit Application: This document is used by businesses to apply for any available tax credits that can reduce their overall tax liability. It’s essential for taxpayers to be aware of and utilize these credits to minimize their tax burden.
  • Worksheet for Franchise and Excise Tax: This worksheet helps taxpayers calculate their estimated tax liability before submitting the FAE 172 form. It provides a step-by-step guide to determine the correct amounts to report, ensuring accuracy in the estimated payments.

Understanding these related documents can simplify the tax process and help ensure that you meet all necessary requirements. Staying organized and informed will make managing your tax obligations much easier.