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.
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.
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.
Estimated tax payments must be made quarterly. The due dates are as follows:
The minimum amount for each quarterly payment is determined by the lesser of the following:
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.
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.
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
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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.
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.