Tennessee § 67-4-1704 - Penalties and interest.

§ 67-4-1704. Penalties and interest.

Penalties and interest shall be assessed and collected by the commissioner of revenue on delinquent or deficient taxes in accordance with chapter 1 of this title. At the time the department of revenue assesses the tax liability, including any applicable penalty and interest, the department shall notify the taxpayer in writing that the failure to cure the tax delinquency or deficiency prior to the renewal date of the license or registration may result in the appropriate licensing board or agency holding the taxpayer's application for renewal of the license or registration in abeyance. For purposes of this section, “cure” means: Payment in full of the tax delinquency or deficiency, including any accrued penalty and interest; Entering into an agreement with the department to pay the tax liability in installments over an extended period, or other agreement acceptable to the department and the taxpayer; or The abatement of the tax liability by the department as required by law. The commissioner of revenue shall on a monthly basis compile and transmit to the appropriate licensing board or agency a list of taxpayers who are delinquent ninety (90) days or more from the due date of the tax and have either not pursued a remedy under § 67-1-1801 or remain liable for such tax at the conclusion of such remedy; provided, however, that such list shall not include any taxpayer who has made all installment payments due and payable under an agreement with the department to pay the tax liability in installments over an extended period. The appropriate licensing board or agency shall not process and shall hold in abeyance the application for renewal of the license or registration of any taxpayer appearing on the list. Any taxpayer whose application for renewal of the license or registration is held in abeyance under subsection (d) may, upon curing the tax delinquency or deficiency as defined in subsection (c), obtain a tax clearance from the department. Upon receipt of the tax clearance, the appropriate licensing board or agency shall resume processing the taxpayer's application for the renewal of the license or registration in accordance with applicable rules and regulations. The Supreme Court has established rules to suspend the license of an attorney who fails to pay the privilege tax. The Supreme Court is encouraged to establish additional rules, as the court may determine necessary, to further promote the timely payment of the tax by licensed attorneys. Acts 1992, ch. 529, § 8; 1999, ch. 267, § 1; 2014, ch. 763, § 1. Amendments. The 2014 amendment rewrote the section which read: “Penalties and interest shall be assessed and collected by the commissioner of revenue on delinquent taxes in accordance with chapter 1 of this title. Failure to pay the privilege tax pursuant to this part shall result in a warning letter from the commissioner of revenue to the delinquent professional. A second nonpayment shall be grounds for suspension of any license or registration by the appropriate licensing board. A third or subsequent nonpayment shall be grounds for revocation of any license or registration by the appropriate licensing board. The commissioner of revenue is authorized to compile and transmit an annual list of delinquent professionals to the appropriate licensing board. The supreme court of Tennessee is encouraged to establish guidelines to suspend the license of an attorney who fails to comply with the requirements of this part.” Effective Dates. Acts 2014, ch. 763, § 2. April 24, 2014. Attorney General Opinions. Constitutionality of proposed tax on privilege of doing business in Tennessee, OAG 99-060 (3/10/99). Cited: Cox v. Huddleston, 914 S.W.2d 501, 1995 Tenn. App. LEXIS 297 (Tenn. Ct. App. 1995).