Gail in Virginia Posted March 5, 2018 Report Share Posted March 5, 2018 I have a client, Virginia S-Corp, who did about $25,000 gross of construction in Tennessee this past year. I would not worry about individual taxes but know nothing about TN corporate taxes. Does he have a filing requirement for Tennessee? Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 5, 2018 Report Share Posted March 5, 2018 1 hour ago, Gail in Virginia said: I have a client, Virginia S-Corp, who did about $25,000 gross of construction in Tennessee this past year. I would not worry about individual taxes but know nothing about TN corporate taxes. Does he have a filing requirement for Tennessee? No. Quote Link to comment Share on other sites More sharing options...
Edsel Posted March 6, 2018 Report Share Posted March 6, 2018 This is a minimal amount, and the crew was probably not in the state to create a requirement. However, in a multi-state allocation, if the S-corp created a payroll in Tennessee, or accounts for destination sales in its allocation, there could be a requirement. Additionally, Tennessee would not require a K-1 to non-residents since Tennessee does not recognize S corps. Even if Tennessee were allocated some money, under no circumstance would any shareholder be required to file a Tennessee return, as there is no personal tax here. However, the allocated amount would require a C Corp Tennessee return (it's called a Franchise and Excise Return), as this state does not recognize tax-free S Corporations. Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 6, 2018 Report Share Posted March 6, 2018 16 hours ago, Gail in Virginia said: I have a client, Virginia S-Corp, who did about $25,000 gross of construction in Tennessee this past year. I would not worry about individual taxes but know nothing about TN corporate taxes. Does he have a filing requirement for Tennessee? I'm sorry, Gail, yes they do. See page 8: https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/feguide.pdf 8 hours ago, Edsel said: This is a minimal amount, and the crew was probably not in the state to create a requirement. However, in a multi-state allocation, if the S-corp created a payroll in Tennessee, or accounts for destination sales in its allocation, there could be a requirement. Additionally, Tennessee would not require a K-1 to non-residents since Tennessee does not recognize S corps. Even if Tennessee were allocated some money, under no circumstance would any shareholder be required to file a Tennessee return, as there is no personal tax here. However, the allocated amount would require a C Corp Tennessee return (it's called a Franchise and Excise Return), as this state does not recognize tax-free S Corporations. S-Corps are not tax free in TN See page 8: https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/feguide.pdf And Sch J3 and Sch J4. https://www.tn.gov/content/dam/tn/revenue/documents/forms/fae/fae170_2018.pdf We do have an individual tax. I pay it. The earnings from construction would not create a filing requirement. https://www.tn.gov/revenue/taxes/hall-income-tax.html You got me on payroll. They'd owe unemployment tax, but I figured the payroll tax issues were long since gone. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 6, 2018 Report Share Posted March 6, 2018 15 hours ago, RitaB said: No. Don't listen to her. 1 2 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 6, 2018 Author Report Share Posted March 6, 2018 Payroll isn't an issue - he is basically a one man operation. But thanks for the info about TN corp tax and the links, Rita and Edsel! 1 Quote Link to comment Share on other sites More sharing options...
Edsel Posted March 7, 2018 Report Share Posted March 7, 2018 Gail, if this is a one-man show, I would totally forget about any tax obligations to Tennessee. Quote Link to comment Share on other sites More sharing options...
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