Claim period opens for franchise tax refunds in Tennessee

NASHVILLE, Tenn. (WSMV) - Gov. Bill Lee signed a bill that gives businesses nearly $2 billion in tax refunds and annual tax cuts. Now, the claiming period for that money is open.

The Tennessee Department of Revenue announced the claim period for the franchise tax opened on Wednesday, May 15, with a limited time to file for the refund.

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Lee signed the bill into law on May 10, which eliminates the property measure for the franchise tax calculation and authorizes the TDOR to issue franchise tax refunds to eligible taxpayers.

“Taxpayers who paid the franchise tax on the property measure using Schedule G for tax years ending on or after March 31, 2020, for which a return was filed with the department on or after January 1, 2021, are eligible for a refund,” TDOR explains.

Here’s how you can obtain a refund:

Taxpayers must amend their franchise and excise tax returns for all eligible tax periods
File a claim for a refund of franchise tax paid on property measure (Schedule G) form
Both the amended returns and refund claim must be submitted by Nov. 30, 2024

Letters have been sent to taxpayers who are potentially eligible for the refunds.

“Regardless of whether you receive a letter, the department encourages taxpayers to review their records and/or consult a tax professional to determine if they qualify for a refund. The department has also created a website with frequently asked questions, a recorded webinar with a demo on how to file your refund claim , and other resources to assist taxpayers,” TDOR explained.