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.
For sales and use tax, consumer use tax, liquor-by-the-drink tax, tobacco tax, or professional privilege tax penalty waiver requests, the taxpayer should access its account by logging on to the Tennessee Taxpayer Access Point (TNTAP) and selecting Petition for Penalty Waiver. For all other tax types, the taxpayer should submit the Petition for Waiver of Penalty via email to email@example.com to request to waive a penalty.