FT-3 - Proration of Franchise Tax on All Short Period Returns

Proration of the franchise tax to cover the proportionate part of the year covered by the return is allowed on all short period returns ending on or after May 13, 2013, but excludes any return based on a 52 to 53 week year.  This computation can be made on the Franchise Tax Short Period Return Worksheets. The franchise tax cannot be prorated below the $100 minimum.  The excise tax may never be prorated.

References: Tenn. Code Ann. §§ 67-4-2015(a); 67-4-2115(a).

Note: This article was updated on June 25, 2024, as a result of a law change. The previous version of FT-1 is available here.