Form Fae 172 - Quarterly Franchise, Excise Tax Declaration (Page 2 of 3) in pdf

Form Fae 172 - Quarterly Franchise, Excise Tax Declaration Page 2

INSTRUCTIONS

1. WHO MUST MAKE ESTIMATED TAX PAYMENTS: Taxpayers who expect a franchise, excise tax liability

of $5,000 or more for

must file a declaration of their franchise, excise tax for the taxable year and make quarterly payments.

the current tax year

2. WHEN TO MAKE PAYMENTS: Quarterly payments of the estimated franchise, excise tax are to be made as follows:

1st payment - The 15th day of the 4th month of the current taxable year.

2nd payment - The 15th day of the 6th month of the current taxable year.

3rd payment - The 15th day of the 9th month of the current taxable year.

4th payment - The 15th day of the 1st month of the subsequent taxable year.

3. REQUIRED PAYMENT: The minimum amount of each quarterly payment shall be the lesser of: (a) 25% of the combined franchise,

excise tax shown on the tax return for the preceding tax year, annualized if the preceding tax year was for less than twelve (12)

months; or (b) 25% of 100% of the combined franchise, excise tax liability for the current tax year.

4. PENALTY AND INTEREST: Penalty at the rate of 5% per month, up to 25%, and interest at the current rate per annum are imposed

upon any quarterly installment which is late or underpaid. Penalty and interest are computed from the due date of the installment

to the date paid or until the fifteenth day of the fourth month following the close of the taxable year.

5. WHICH FORM TO USE: All franchise, excise tax payments must be accompanied by the Tennessee Estimated Franchise,

Excise Tax Declaration form. If you received a preaddressed packet, please use the prenumbered vouchers and envelopes supplied

with the packet. This will help expedite the processing of your estimated payments.

RECORD OF ESTIMATED TAX PAYMENTS

DUE DATE OF PAYMENT

DATE PAID

AMOUNT PAID

_____________________________________________________________

Total payments to be taken on completed return

INTERNET (1-07)

Form Fae 172 - Quarterly Franchise, Excise Tax Declaration Page 2