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VideoSuccess Story: Identifying Tennessee Franchise Tax Refund Opportunities
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The Client
A client operating across multiple jurisdictions had filed Tennessee franchise and excise tax returns for several years. Like many taxpayers without a dedicated state tax department, this client faced challenges in keeping pace with evolving state tax laws and regulatory requirements.
The Challenge
In 2024, Tennessee made a significant change to how franchise tax is calculated. Previously, taxpayers were required to calculate the tax using two different methods and pay the higher amount. One of those methods was based on the value of property owned or used in the state. The update eliminated the property-based calculation going forward and created a limited-time opportunity for businesses to request refunds for prior years if they had paid more tax under that method than the alternative calculation.
This created a meaningful opportunity for companies with significant Tennessee property holdings to get cash back, but the refund window was short and required a detailed review of historical filings.
The Process
Rather than waiting for clients to identify the opportunity independently, Weaver’s state and local tax (SALT) team proactively reviewed client data to identify taxpayers who may benefit from the refund opportunity. Based on its Tennessee footprint and historical tax profile, the client was identified as a strong candidate.
In this instance, the client was not aware that the opportunity existed. With limited resources, the business needed assistance evaluating eligibility, reviewing historical filings and preparing refund claims within the state’s filing window. Weaver handled the engagement end to end, minimizing the time and effort required from the client.
Our team:
- Reviewed multiple years of Tennessee tax filings
- Recalculated franchise tax under the updated framework
- Quantified potential refund amounts
- Prepared and filed amended returns and refund claims
- Evaluated current year estimated payments to align with the new rules
- Managed the process from initial analysis through submission and follow-up
The Deliverables
Weaver provided a comprehensive review of the client’s Tennessee franchise tax position and supported the refund process from start to finish.
As a result, the client recovered nearly $500,000 through Tennessee’s one-time refund opportunity while also improving future cash flow through more accurate tax payments.
The engagement highlights the value of proactive state and local tax monitoring, particularly for companies without dedicated SALT resources. By identifying the opportunity early and managing the process efficiently, Weaver helped the client capture a significant benefit that may otherwise have been missed.
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