FT-8 - Liquidation Basis of Accounting Used for Franchise Tax Purposes

GAAP basis financial statements must be used in calculating the franchise tax base on Schedule F of the Tennessee franchise tax return, if they are maintained.  Whenever liquidation basis of accounting is required by GAAP, and those records are maintained, they should be used for Tennessee franchise tax purposes.

References: Tenn. Code Ann. § 67-4-2106(b).

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.