With the complexity of tax regulations and the potential financial implications for businesses, experts are emphasizing the critical importance of tax planning consultations for all business owners. Here's why scheduling one should be on every entrepreneur's to-do list. You can schedule your tax planning consultation today by calling (615) 267-0125 or (989) 704-6560.
The Tennessee Department of Revenue will be raising the prevailing and installment payment agreement interest rates from July 1, 2023. The prevailing interest rate charged to Tennessee taxpayers with past due balances or those who fail to make estimated quarterly payments will increase to 12.25%. Additionally, an additional 1% will be charged for taxpayers who pay past-due taxes through an installment agreement, making the total interest rate for installment payment agreements 13.25%. The decision to raise these rates is in response to the increase in the Prime Interest Rate, which is tied to the FED Funds rate and the discount rate set by the Federal Reserve. This change will affect Tennessee taxpayers who owe balances to the state, particularly small businesses. It is advised that businesses have a plan in place to pay their state tax balances on time to avoid the rising rates. It is also worth noting that these expenses are generally not deductible for taxpayers, so it may be more beneficial to borrow funds from a bank or another capital source rather than borrowing from the state. Charles R. Frazier is a Nashville-based tax attorney specializing in tax issues and planning services. He has represented numerous taxpayers before the IRS and state department of revenue. More information about his services can be found online. Rick Miller is a Certified Public Accountant in the Nashville area who prepares tax returns for business owners and individuals in Tennessee and at the federal level.