RAP-9 - Amending Sales Tax Returns After Receiving Assessment

If the assessment plus the tax reported on the taxpayer’s original sales tax returns for the quarter does not represent all the sales tax the business collected during that quarter, the taxpayer may need to amend the returns for the quarter.  See the example below. Please note, if the taxpayer fails to timely pay the assessment, even if it plans on amending its returns, the assessment will become delinquent and submitting to the Department’s Collection Services Unit.

If the taxpayer amends any sales tax returns and thinks this should reduce the assessment, contact the retail accountability unit at Resale.Data@tn.gov or (615) 741-9300, and provide the amended information.  The assessment will not be automatically adjusted due to amended returns. The taxpayer must contact the Retail Accountability Unit once it has filed and paid the amended returns.


Month Sales Tax Collected Sales Tax Reported
October $7,500.00 $2,000.00
November $8,200.00 $2,100.00
December $9,750.00 $2,450.00
Total: $25,450.00 $6,550.00


Sales Tax Collected for the Quarter: $25,450.00
Sales Tax Paid on Sales and Use Tax Returns: $6,550.00
Underreported tax: $18,900.00
Retail Accountability Tax Assessment: -$14,000.00*
Additional tax due on Amended Returns: $4,900.00

The October, November and December monthly sales tax returns will need to be amended to report the $4,900.00 of additional tax collected and not remitted to the Department of Revenue. Your books and records should indicate which month the tax was underreported, and the necessary months should be amended. 

* Penalty and interest from the Retail Accountability Assessment cannot be deducted from tax due.

Please note:  Amended sales and use tax returns will not cause the Retail Accountability assessment to be recalculated or the penalty to be removed from the assessment.  Tax paid on amended returns filed after the Retail Accountability assessment is issued will be considered a payment toward the Retail Accountability assessment.




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