2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 6 - SALES AND USE TAXES (§§ 67-6-101 — 67-6-907) › Part 5 - COLLECTION AND ENFORCEMENT GENERALLY (§§ 67-6-501 — 67-6-541) › Section 67-6-517 - Delinquency - Determination and collection of tax

(a)
In the event any dealer fails to make a report and pay the tax as provided by this chapter, or in case any dealer makes a grossly incorrect report, or a report that is false or fraudulent, it shall be the duty of the commissioner to make an estimate for the taxable period of retail sales of such dealer, or of the gross proceeds for rentals or leases of tangible personal property by the dealer, estimating the purchase price of all articles of tangible personal property imported by the dealer for use or consumption or distribution or storage to be used or consumed in this state, and assess and collect the tax and interest, plus penalty, if such have accrued, on the basis of such assessment, which shall be considered prima facie correct, and the burden to show the contrary shall rest upon the dealer.
(b)
If any dealer subject to make and file a return required by any provision of this chapter fails to render such return within the time required or renders a return which is false or fraudulent in that it contains statements that differ from the true gross sales, purchases, leases or rentals taxable under this chapter, or otherwise fails to comply with this chapter for the taxable period for which the return is made, the commissioner shall give the dealer ten (10) days' notice in writing requiring the dealer to appear before the commissioner or the commissioner's assistant with such books, records and papers as the commissioner may require relating to the business of the dealer for such taxable period; and the commissioner may require the dealer or the agents and employees of such dealer to give testimony or to answer interrogatories under oath administered by the commissioner or the commissioner's assistants respecting the sale at retail, the use, consumption, or distribution, or storage for use or consumption in this state or lease or rental of tangible personal property subject to tax or the failure to make report thereof as provided in this chapter.
(c)
If any dealer fails to make any such return or refuses to permit an examination of such books, records or papers, or to appear and answer questions within the scope of such investigation relating to the sale, use, consumption, distribution, storage, lease or rental of tangible personal property, the commissioner is authorized to make an assessment based upon such information as may be available to the commissioner and to issue a distress warrant for the collection of any such taxes, interest or penalties found to be due. Any such assessment shall be deemed prima facie correct.
(d)
In the event the dealer has imported the tangible personal property and fails to produce an invoice showing the purchase price of the articles as defined in this chapter, which are subject to tax, or the invoice does not reflect the true or actual purchase price as defined in this chapter, then the commissioner shall ascertain, in any manner feasible, the true purchase price, and assess and collect the tax with interest plus penalty, if such have accrued on the true purchase price as assessed by the commissioner; the assessment so made shall be considered prima facie correct, and the duty shall be on the dealer to show the contrary.
(e)
In the case of the lease or rental of tangible personal property, if the consideration given or reported by the dealer does not, in the judgment of the commissioner, represent the true or actual consideration, then the commissioner is authorized to fix the same and collect the tax thereon in the same manner as provided in this section, with interest plus penalty, if such have accrued.
Acts 1947, ch. 3, §§ 8, 10; C. Supp. 1950, §§ 1248.67, 1248.69, 1248.70, 1248.74 (Williams, §§ 1328.30, 1328.32); Acts 1965, ch. 285, § 1; T.C.A. (orig. ed.), §§ 67-3029 -- 67-3032; Acts 2003, ch. 357, § 4; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, §§ 51, 71.