2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 1 - GENERAL PROVISIONS (§§ 67-1-101 — 67-1-1808) › Part 15 - STATUTE OF LIMITATIONS (§§ 67-1-1501 — 67-1-1502) › Section 67-1-1501 - Limitation on assessment and collection of taxes

(a)
Locally Collected Privilege Taxes.
All state, county or municipal privilege taxes, including, but not limited to, business, litigation, real estate transfer and mortgage taxes collected by the state or by local officials for the benefit of cities, counties or the state, shall be barred, and any lien for such taxes shall be cancelled and extinguished, unless the liens are collected or suits for the collection shall have been instituted within six (6) years from January 1 of the year for which such taxes accrued.
(b)
State Taxes Requiring the Filing of Returns - Assessment.
Notwithstanding subsection (a), the amount of any tax imposed under any title, in which the filing of a return is required by the state, shall be assessed within three (3) years from December 31 of the year in which the return was filed, and no levy or other proceeding to enforce the collection of such tax without assessment shall be made or begun after expiration of such period; provided, that:
(1)
In the case of a failure to file a return, the tax may be assessed or a levy or other proceeding to enforce the collection of such tax may be begun, with or without assessment, at any time;
(2)
In the case of a false or fraudulent return with the intent to evade the tax, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be begun, with or without assessment, at any time;
(3)
In the case of a redetermination of net income by the internal revenue service resulting in a taxpayer owing the state additional franchise or excise tax, the statutory period for the assessment of additional franchise or excise tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revision;
(4)
In the case of a revision of any federal estate tax resulting from an examination by the internal revenue service that results in an estate owing the state additional estate or inheritance tax, the statutory period for the assessment of additional estate or inheritance tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revisions; and
(5)
In the case of an agreement in writing entered into by the commissioner or the commissioner's delegate and the taxpayer within the time prescribed in this subsection (b) for assessment, consenting to an assessment after such time, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be made or begun with or without assessment at any time within the agreed upon period. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon period.
(c)
State Taxes Requiring the Filing of Returns - Collection.
The amount of any tax assessed as prescribed by subsection (b) may be collected within the period of limitation provided in §
67-1-1429
.
(d)
Nonapplicable to ad valorem taxes.
Nothing in this section shall apply to the collection of ad valorem taxes assessed against real or personal property by any county or municipality in this state.
(e)
For purposes of this section, the term "assessed" or "assessment" shall be deemed to include any notice of proposed assessment issued by the commissioner or any other authorized person under §
67-1-1438
, and the time periods set forth in subsection (b) are met if the commissioner issues a notice of proposed assessment within the period of time prescribed for an assessment.
Amended by 2014 Tenn. Acts, ch. 854, s 8, eff. 1/1/2015.
Acts 1885, ch. 24, § 1; Shan., § 821; mod. Code 1932, § 1494; Acts 1949, ch. 229, § 1; impl. am. Acts 1949, ch. 236, § 1; C. Supp. 1950, § 1494; Acts 1972, ch. 492, § 1; 1973, ch. 368, § 3; 1974, ch. 484, § 2; T.C.A. (orig. ed.), § 67-1323; Acts 1985, ch. 373, § 1; 1988, ch. 526, § 1; 1999, ch. 162, § 3; 1999, ch. 406, § 7; 2008 , ch. 1106, § 33.