Tennessee State Tax Extension

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The State of Tennessee will automatically grant you a 6-month tax extension if you were approved by the federal tax extension (Form 4868) and have no state tax payment due. However, you will need to submit Tennessee Form INC 251 if you need to make a state tax payment or if you were not approved for a federal extension.

The State of Tennessee will automatically grant your business a 6-month tax extension if it was approved by the federal tax extension and have no state tax payment due. However, you will need to submit Tennessee Form FAE-173 if your business needs to make a state tax payment or if you were not approved for a federal extension.

What are the Payment Requirement?

  • Payments equal to the lesser of 100% of the prior year tax liability or 90% of the current year tax liability must be made by the original due date.
  • If the prior tax year covered less than twelve months, the prior period tax must be annualized when calculating the required payment.
  • If there was no liability for the prior year, the required payment is $100.
  • Quarterly estimated payments, prior year over payments and any other prepayments should be deducted on Line 3 of the worksheet.

Extension requests should be made as follows:

  • If you are not required to make a payment because you have already made sufficient payments, either the state form or a copy of your federal extension request can be submitted. The form or copy of the federal extension need not be filed on the original due date of the return. Instead, it should be attached to the return itself, which is to be filed on or before the extended due date.
  • If a payment is needed to meet the payment requirement and you do not file your federal return as part of a consolidated group, either the state form or a copy of your federal extension request can be submitted.
In this case, the form or copy of your federal extension must be filed with the extension payment on or before the original due date of the return.
  • If a payment is required and you file your federal return as part of a consolidated group, you must use this form or file an extension request electronically. This form or the electronic version of this form must be filed with the extension payment on or before the original due date of the return.

Other important information:

  • Penalty will be computed as though no extension had been granted if, (1) the amount paid on or before the original due date does not satisfy the payment requirement indicated above, or (2) the return is not filed by the extended due date.
  • An approved extension does not affect interest. Interest will be computed on any unpaid tax from the original due date of the return until the date the tax is paid.

What are the Payment options available ?

Pay with check or money order: Enclose a Check or Money Order along with the completed form and mail to:
Tennessee Department of Revenue
Andrew Jackson State Office Bldg.
500 Deaderick Street
Nashville, TN 37242

Why should I use ExpressExtension?

ExpressExtension has an experienced and competent team to meet all your individual and business tax solutions. We provide a complete and easy solution to all your tax needs.

How do I get automatic extension for Tennessee State?

The Tennessee Department of Revenue requires that you file for an extension whether or not you owe additional taxes at this time. Tennessee automatically grants a six month extension of time to file until October 17, 2016. To avoid penalties, Tennessee requires that your balance be paid in full with the filing of your return. Penalty and Interest Charges on Tax Owed:

Is there any penalty involved on failing to pay the taxes in time?

Yes. In all cases, interest will be charged from the date the tax should have been paid (April 18, 2016) until the date of payment. In addition, the state may assess the following penalties:

Late Payment Penalty:
Tennessee may assess a late payment penalty of 5% per month to a maximum of 25% of the outstanding balance if you do not pay total tax due with the filing of your return.

The Tennessee Department of Revenue requires that you file for an extension whether or not you owe additional taxes at this time.

How to file Form INC 251?

  • Step 1: Enter the beginning and ending dates of the taxable year you will be filing a return for.
  • Step 2: Enter your state account number.
  • Step 3: Enter your Social Security number and, if applicable, your federal employer identification number. If filing jointly with your spouse, enter their Social Security number as well.
  • Step 4: Enter your county and city of residence.
  • Step 5: Check all boxes that apply concerning your filing status, exemptions and (if a business) entity status.
  • Step 6: On line 1, enter the total of all dividend and interest income.
  • Step 7: On line 2, enter $2,500 if married and filing your taxes jointly. Enter $1,250 if married and filing separately or single.
  • Step 8: Subtract line 2 from line 1. Enter the resulting difference on line 3.
  • Step 9: Multiply line 3 by 6%. Enter the resulting sum on line 4. This is your estimated tax owed.
  • Step 10: Sign and date the form. Your spouse, if filing jointly, must also sign. The return must be filed by or before the statutory due date.

What are the Payment Options available?

Pay with Check or Money Order: Enclose a check or money order along with the completed form and mail to:
Tennessee Department of Revenue
Andrew Jackson State Office Bldg.
500 Deaderick Street
Nashville, TN 37242

Why should I use ExpressExtension?

ExpressExtension has an experienced and competent team to meet all your individual and business tax solutions. We provide a complete and easy solution to all your tax needs.