REVENUE ADDS PAYMENT WAREHOUSING TO ONLINE SALES TAX FILING

SALES TAX ELECTRONIC PAYMENTS NOW MANDATORY FOR LOWER THRESHOLD

NASHVILLE, Tenn. - The Tennessee Department of Revenue recently added payment warehousing to its sales and use tax online filing site. Payment warehousing allows a taxpayer to complete the tax return in advance and schedule the payment to be processed on the due date. This allows taxpayers to better manage their filing obligations while maintaining access to their money as long as possible. This and other options are available at the department’s Web site, www.Tennessee.gov/revenue. Like Revenue’s other electronic applications, this option is convenient, easy and accurate, which reduces the number of errors and cost of the filing process.

“The department received a great deal of feedback from taxpayers who requested an application that allows them to file and pay online ahead of time while postponing payment until the due date,” said Revenue Commissioner Reagan Farr. “I strongly encourage taxpayers to continue voicing their opinions to the department, as it is through feedback like this that the department knows what is needed to implement new systems.”

This legislative session, filing and payment of sales and use tax returns electronically became mandatory for taxpayers whose average monthly liability is $2,500 or more. The previous threshold was an average monthly liability of $5,000. The sales and use tax e-file application has been streamlined to ease the process of online filing to aid those who are mandated to file electronically.

In order to assist taxpayers with compliance to electronic filing, the Department of Revenue provides computer access in its offices in Chattanooga, Knoxville, Jackson, Johnson City, Memphis and Nashville. The department also offers an electronic commerce hot line to assist taxpayers and tax practitioners at (866) 368-6374. Nashville-area and out-of-state callers should dial (615) 253-0704. All taxpayer data, whether paper or electronic, filed with the Department of Revenue is confidential data protected under Tennessee law.

In addition, many tax payments can be made by credit card using the Department of Revenue’s Web site. Sales and use tax, consumer use tax, individual income tax, professional privilege tax and bill payments can all be paid by credit card. The department continues to work to provide convenient on-line applications for taxpayers. Mastercard, American Express and Discover Card are accepted. A processing fee of 2.49 percent will be charged.

Electronic filing of the sales and use tax, consumer use tax, individual income tax, professional privilege tax, and minimum franchise and excise tax returns and estimated payment returns and extensions is available via the department's Web site, www.Tennessee.gov/revenue. Bill payments and many business tax registration activities also can be completed online.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2006-2007 fiscal year, the department collected $11 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

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