Tn Preparers, Please

[taxmom34]

it was my understanding when doing a tenn return last year that there is no estimated payments you only pay when you file your return. is that right? my client who moved to tenn. is just filing their return and they are getting a refund, is that possible?
i didn't do the return this year.

[Peachie]

TaxMom,

You may want to check out the TN DOR online if no one answers.

Peachie

[RitaB]

That's interesting

it was my understanding when doing a tenn return last year that there is no estimated payments you only pay when you file your return. is that right? my client who moved to tenn. is just filing their return and they are getting a refund, is that possible?
i didn't do the return this year.

You are correct, no estimated tax payments for TN. There are provisions for "prepay." It sounds like your client made a "prepayment" and his liability was less.

http://www.state.tn.us/revenue/taxguides/indincguide.pdf

"Prepayments: The State of Tennessee does not require estimated or quarterly payments for Individual Income Tax. However, if you want to make a prepayment before filing a complete return, file the Application for Extension of Time to File Individual Income Tax Return (INC251) form and indicate on Line 4 the amount you are electing to prepay."

[taxmom34]

no prepay

they made no payments, but the CPA that they went to in Tn told them they had a $13 refund. they were picking up their returns today and emailed me with their results. and Tn kinda stuck out to me.

[Snaggletooth]

Doesn't Stack Up

TaxMom this sounds like your Lebanon/Watertown connection.

The only "refund" I've ever had on the TN personal return was when taxpayer did an extension and paid money when extension was filed.

There is no provision to send in "estimated payments." I'm sure if the taxpayer's wanted to contact the Dept of Rev for such an arrangement, TN would be very happy to take their money. But there are no mainstream provisions for estimated payments, no forms, no collection process in place, etc. and if I wanted to just "give" them money in advance I would worry that TN would not properly track it, since there is no accounting set up to accommodate it.

I think your client has been misinformed, or more likely, they have misinterpreted something and have misinformed you. Maybe they were speaking of business taxes, where such a refund would be infinitely more possible.

[taxmom34]

thank you snags

they picked up their returns yesterday and questioned the refund for Tn. preparer made mistake will correct it and redo Tn. they made a payment with their return last year and she applied it as a payment without asking what year the payment was for. she apologized