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A penalty of 5% of the unpaid amount is added for each month (or part of the month) that a payment is delinquent or deficient, up to a maximum of 25%. Interest is computed at the current rate of interest.
The penalty rate for delinquent and deficient estimated payments is two percent per month, up to a maximum of 24 percent.
underpayment of tax on which penalties and interest accrued, may apply for waiver of penalty. Penalty rate is 2% per month (max 24%) plus interest at the current rate per year.
Certain entities under specific circumstances are exempt from paying the business tax. These may include, but are not limited to, people acting as employees, manufacturers, religious and charitable entities selling donated items, direct-to-home satellite providers, and movie theaters.
Individual filers in TN do not have to file estimated quarterly payments. Businesses, including Tennessee LLCs, with a combined franchise and excise tax payment of more than $5,000 are required to make quarterly payments.
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A SMLLC will not be disregarded if its single member is not classified as a corporation for federal tax purposes. In such cases, the SMLLC will be treated as a separate entity for franchise and excise tax purposes, and it must file its own separate franchise and excise tax return.
If you dont pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return.
Overview. If you are a corporation, limited partnership, limited liability company, or business trust chartered, qualified, or registered in Tennessee or doing business in this state, then you must register for and pay franchise and excise taxes.

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