Tennessee: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Tennessee
In Tennessee, the Department of Revenue will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Tennessee Department of Revenue, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Revenue, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Tennessee
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Tennessee sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Revenue cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Tennessee is three years from the end of the calendar year in which the return filed.
Appealing to the Department of Revenue in Tennessee
If you do not agree with a penalty or decision made by the Tennessee Department of Revenue, you have the right to file an appeal and ask for reconsideration. An informal conference may be requested with the Commissioner of Revenue leff than thirty days after date of notice of assessmentTop
Administrative Sales Tax Appeals in Tennessee
This district has no administrative appeal bodyTop
Judicial Sales Tax Appeals in Tennessee
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Chancery Court within the ninety days following the mailing of the notice of assessment
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