Tennessee Taxing Information
Collections
The state will begin the process of collections if you fail to file or pay a tax on time. You will receive multiple notices from the Department of Revenue and related divisions which, if left unaddressed, will result in enforced collection actions.
Throughout this process, penalties and interest will accrue on whatever tax has been left unaddressed. Each varies according to the circumstances and type of tax.
Hearings and Disputes
If you disagree with an assessment, you may request an informal conference to dispute it, in writing and in a timely manner.
You may also file suit against the assessment in chancery court.
Levy
One form of enforced collection is the levying of property. This involves the seizure of real and personal property (or the rights thereto) with the intention of selling it to resolve liability. Notices will be issued prior to both seizure and any subsequent sale.
Priority One: Stopping Aggressive Enforced Collections
Partial Payment Agreement
If you are unable to pay your tax bill in full, you may request an installment plan by which you can pay it off over time with scheduled payments. The state is inclined to protect its interests, so should a request be accepted, additional security measures may be taken, such as requiring a down payment or filing a lien. You will need to comply with any terms and conditions given to you, lest you incur penalties or enforced collection actions. Penalties and interest will still accrue on the unpaid portion of your liability.
Offer in Compromise
The Department of Revenue may, under particular conditions, accept settlement of your liability for less than the full amount if it is found to be a compromise between your best interests and the State’s. You must be prepared to closely follow all terms and conditions given by the Department. These can include your having filed all required tax returns, completed the application, and provided supplementary documentation.
Representation
You may choose to be represented in tax matters before the state by an authorized individual. To do so, you must complete and submit the appropriate documentation.