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Penalty Waivers

Penalties may be waived in delinquency or deficiency cases if the taxpayer has a reasonable cause that is listed in state statute (see Tenn. Code Ann Section 67-1-803(c) and (d)). Waivers can also be issued in delinquency cases if the taxpayer has a good two-year filing record with the Department, and no willful disregard of the law or gross negligence is involved. The Attorney General must approve a waiver of penalty of $100,000 or more.

Log into the Tennessee Taxpayer Access Point (TNTAP), access your account, and select Petition for Penalty Waiver.  This is available for the following tax types:  

Sales and use tax Liquor-by-the-drink tax
Business tax Tobacco taxes
Franchise & excise taxes Alcoholic beverages taxes
Hall income tax Beer taxes
Consumer use tax Gross receipts taxes (bottlers, utilities, vending, mixing bar)
Professional privilege tax Severance taxes

For all other tax types, the taxpayer should submit the Petition for Waiver of Penalty  via email to penalty.waivers@tn.gov to request to waive a penalty.