Out-of-state LLCs that have purchased a vehicle, boat, or airplane with an out-of-state registration and wish to request a voluntary disclosure agreement will be asked to disclose all purchases made, whether made in or outside of Tennessee, and registered in another state without the payment of sales/use tax.
If the Department has not contacted the taxpayer about the liability and has no evidence of knowing and willful intent to evade the tax, a voluntary disclosure agreement will be offered.
The voluntary disclosure agreement will allow the taxpayer to pay the sales/use tax and interest due on the vehicles, boats, or airplanes disclosed without the imposition of any penalty.
Under Tennessee law, interest begins accruing from the date the tax was originally due, which is typically the date the vehicle, boat, or aircraft was brought into Tennessee or began being used here. Interest continues to accrue monthly until the tax is paid in full and cannot be waived.
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