CCH Axcess Tax

Introduction to the TN Franchise & Excise Return (Continued)

Schedule G - Determination of Real & Tangible Property

Only the following items are carried from the federal balance sheet to Tennessee Schedule G: (1) Land, (2) Buildings, Leaseholds and Improvements, (3) Inventories and work in progress. The other items are entered on the federal allocation and apportionment input (which can also be used to override items carried from the federal balance sheet). Use Tennessee Other > Book Value of Property to override the amounts computed from the federal input..

State Tax Refund

Refund amounts entered on federal Income / Deductions > Business > Income > State and City Tax Refunds will be deducted from the applicable state return. The state entered in federal General > Basic Data > General >State code is assumed to be the state from which the refund was received, if the state code on federal Income / Deductions > Business > Income > State and City Tax Refunds is left blank. For Tennessee Forms FAE 170 and FAE 174, this amount is deducted from the addition for Tennessee excise tax expense on Schedule J. Only the Tennessee amount based on income is deducted.

Application for Extension of Time to File

Tennessee requires the filing of an extension Form FAE 173 for additional time to file the return. To calculate the tax due and prepare the Tennessee Form FAE 173, enter "TN" on federal Extensions > Extensions > State / City Extension > State or select the option to produce all state first extensions on the Federal Extension section..The calculated amounts for Form FAE 173 may be overridden by making entries on federal Extensions > Extensions > State / City Extension.

Interest Rate Override

Federal Penalties > Interest Rate Overrides is available for overriding rates, which apply to the calculation of late payment interest and underpayment penalty. Tennessee uses one rate for the period 7/1/XX through 6/30/XX. An override entry for the first quarter of 20XX will effectively override the interest and/or penalty rate for the period 7/1/XX through 6/30/XX, not just 1/1/XX through 6/30/XX. See the federal help screens for further information on overrides.

Input in the Late Payment Interest Rate section changes the rate for taxes unpaid by the due date on Form FAE 170, page 1 or FAE 174, page 1. Input in the Underpayment of Estimated Tax Penalty Rate section changes the interest rate on Form 2220 Worksheet, Calculation of Underpayment of Estimated Tax.

Multi-State Apportionment and Allocation

Select Detail Code: On federal Common State/City > Allocation and Apportionment > Property Factor, Payroll Factor and Sales Factor and federal Common State/City > Allocation and Apportionment - State Specific Information > Apportionment - Miscellaneous, a detail code is entered at the head of each column. The amount for each state is entered on the line for that state. The total everywhere (TE) amount will be computed as the sum of the entries for each state, plus entries for foreign and other. Detail codes are provided for each category of property, payroll, and sales. Federal Common State/City > Allocation and Apportionment - Total Everywhere Overrides is available to override total everywhere (TE) amounts for each factor.

Apportionment Factors for Multi-State Corporations (Form FAE 170, Schedule N-S)

PROPERTY
Use federal Common State/City > Allocation and Apportionment > Property Factor to enter the following:
Inventories & work in progress	Inventories
Buildings	Buildings
Leasehold improvements	Leasehold improvements
Machinery & equipment	Machinery, Equipment
Furniture & fixtures	Furniture and Fixtures
Automobiles & Trucks	Transportation and Delivery Equipment
Land	Land
Prepaid supplies & other property	Other depreciable assets, Depletable assets, Supplies, Other tangible property
Share of partnership property	PPROP (Common State/City > Allocation & Apportionment - State Specific Information > Apportionment - Miscellaneous)
Rented property	Real property rented, Tangible prop rent
Exempt inventory	EXMINV (Common State/City > Allocation & Apportionment - State Specific Information > Apportionment - Miscellaneous)
Total Property	Calculated
PAYROLL
Use federal Common State/City > Allocation and Apportionment > Payroll Factor to enter the following:
Total Payroll	All categories
SALES
Use federal Common State/City > Allocation and Apportionment > Sales Factor to enter the following:
Business gross receipts	Sales - outside to within state less Returns/allowances - outside to within, Sales - within to within state less Returns/allowances - within to within, Sales - within to U.S. Government less Returns/allowances - within to U.S. Gov, Interest, Dividends, Rents, Royalties, Sales of real and tangible properties, Sales of intangibles, Receipts from services, Other receipts, Total sales - overrride
Note: To enter Tennessee special apportionment information for common carriers, air carriers or air express carriers, use federal Common State/City > Allocation and Apportionment > Transportation Factor

Use federal Common State/City > Allocation and Apportionment - State Specific Information > Allocation Miscellaneous to enter Tennessee allocation of nonbusiness income (Form FAE 170, Schedule M or Form FAE 174, Schedule M). Note that using federal Common State/City > Allocation and Apportionment > Allocation does not apply to Tennessee.

Apportionment data for Form FAE 174 is entered on Tennessee Other Returns > Allocation and Apportionment - FAE 174 (for Schedules SE and SF) and Tennessee Income/Deductions > Captive REITS Apportionment (for Schedule N).

Consolidated net worth apportionment for franchise tax purposes (for both Form FAE 170 and Form FAE 174) is entered on Tennessee Income/Deductions > Consolidated Net Worth Apportionment.