What are the franchise and excise tax filing requirements for an entity that has substantial nexus in the state but qualifies for protection under Public Law 86-272?

A taxpayer doing business in Tennessee that has substantial nexus in this state must register and file a franchise and excise tax return (FAE 170). However, if it qualifies for the protection afforded by Public Law 86-272, it is only subject to the franchise tax and is not subject to the excise tax. In that situation, the taxpayer should check the box on page 1 of FAE 170 indicating Public Law 86-272 and then complete only the franchise tax portion of the return.

See related article: What legislation was passed in 2015 that affects franchise & excise tax?

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