Tennessee Department of Revenue Issues Tax Filing Extensions for Victims of December 2023 Storms
Updated Jan. 29, 2024: This story has been updated to include information about sales tax refunds on home appliances, home furniture and home building supplies.
The Tennessee Department of Revenue has recently issued Important Notice #24-01 regarding tax filing extensions for those affected by the Dec. 9, 2023, tornadoes and storms in parts of Tennessee.
Federally Declared Disaster Areas
Under Tennessee law, the commissioner is authorized to extend the deadline for filing a return whenever the IRS extends a federal filing date for a group of taxpayers. Under this authority, the state extension cannot exceed the federal extension.
Franchise and Excise Tax
Consistent with the IRS’s decision to extend federal deadlines for those businesses located in a designated disaster area related to the Dec. 9 storms, the Department of Revenue has extended the franchise and excise tax filing and payment deadlines to June 17, 2024. This extension applies to all taxpayers located in any disaster area designated by the Federal Emergency Management Agency (FEMA). Currently this includes Davidson, Dickson, Montgomery and Sumner counties, but taxpayers located in areas later designated as disaster areas will automatically receive the same filing and payment extension.
This tax relief postpones the franchise and excise tax filing and payment deadlines that occur starting Dec. 9, 2023. Affected businesses and individuals will have until June 17, 2024, to file returns and make any payments (including quarterly estimated payments) originally due during this period.
The department will automatically apply these extensions to franchise and excise tax accounts of taxpayers with a primary address on record with the department in the designated disaster area. Penalties and interest will not be applied to returns filed and payments made on or before this extended due date. These extensions will not alter due dates or extend due dates that otherwise fall after June 17, 2024. An affected taxpayer should contact the department if it receives a late filing or late payment penalty notice from the department.
Sales Tax Refunds on Home Appliances, Furniture and Building Supplies
In addition, Tennessee residents impacted by these storms are potentially eligible for sales tax refunds on home appliances, home furniture and home building supplies.
To be eligible for this refund, residents must be receiving financial assistance from FEMA for the repair, replacement or construction of their primary home that was damaged or destroyed in the natural disaster.
To receive a refund, the taxpayer must file a claim with the Department of Revenue. Taxpayers may file a claim up to a year from the date on the FEMA decision letter. Here is what to know when filing a claim:
- Eligible items are major appliances purchased for $3,200 or less, residential furniture purchased for $3,200 or less and residential building supplies purchased for $500 or less. The maximum amount of refund available to any one residence is $2,500.
- A person may only file ONE claim for a primary residence. The claim should include all Tennessee sales and use tax paid, up to $2,500, to all retailers for any eligible items. Receipts and invoices should be compiled and tracked so that all eligible items purchased after the date of the disaster from all retailers can be submitted at the same time.
Sales and Use Tax, Business Tax and Other Taxes
Although these extensions cannot be applied automatically, the department will approve, on a case-by-case basis, extension requests from taxpayers who are unable to file returns for other taxes because of the impact of the December storms.
Requesting Extensions
Requests should include the business name, entity ID or Tennessee account number, business location and a brief description of the loss. The department has set up a dedicated email account for expedited service of these requests: Revenue.DisasterExtension@tn.gov.
Tax Practitioners
Extensions may be granted if taxpayers’ returns are prepared by a practitioner located in the designated disaster area who is unable to file returns or make payments for clients due to the severe storms and tornadoes. Affected tax professionals should contact the department.
For more information, visit the Department of Revenue website or call 615-253-0600.