Sales and Use Tax Can Now Be Filed Online

Convenient, close at hand and open 24 hours a day, seven days a week, the Tennessee Department of Revenue announces that sales and use tax can now be filed online at www.tennessee.gov/revenue. It's as easy as 1, 2, 3.

"The Governor has challenged each of us to make state government's services more accessible, user-friendly and efficient," said Tennessee Department of Revenue Commissioner Loren L. Chumley. "The option to file sales and use tax online through the state's Web site is just one way the Department of Revenue is working to accomplish that goal."

All sales tax filers in Tennessee may use this new service. This online tax filing option will greatly benefit taxpayers who file returns for five or fewer locations.

Currently, electronic filing of the Hall income tax, professional privilege tax, and sales and use tax is available via the department's Web site. Information about sales tax and motor fuel tax electronic data interchange is available on the department's Web site. Electronic funds transfer is also available on the Web site.

All taxpayer data (paper or electronic) filed with the Department of Revenue is confidential data protected under Tennessee law.

How to set up and file sales and use tax online

1. Filers must be registered to collect sales tax with the Tennessee Department of Revenue. See below for registration instructions. Registered filers can register to file sales and use tax by completing (at no charge) a TennesseeAnytime subscriber agreement application, available at www.tennesseeanytime.org/online/sales.html or upon request from Revenue's Taxpayer Services Division. (The statewide toll-free number is (800) 342-1003. Nashville area and out-of-state callers should call(615) 253-0600.) When completed and received by the department, a username and password will be issued to qualified applicants within one business day.

2. Filers can then access the secure interface and provide their sales and use tax information. The system then performs all calculations, adjustments and discounts, giving the user the total tax due, and submits the return directly to the Department of Revenue. Filers can even file online if they need to close their business.

3. Once the payment amount due is shown to the filer, he or she has the option to pay the total, partial or none of the tax due. However, if the filer chooses not to pay at this time, when he or she does pay, the payment will have to be in electronic funds transfer or automated clearing house form.

An online demonstration is available at www.tennesseeanytime.org/sales/demo

How to register with the Department of Revenue

To set up an online account, you must first be registered with the Tennessee Department of Revenue. Registration for sales or other taxes requires the completion of a free application, available at www.Tennessee.gov/revenue/forms/general/index.htm or upon request from Revenue's Taxpayer Services Division. (The statewide toll-free number is (800) 342-1003. Nashville area and out-of-state callers should call (615) 253-0600.) When completed properly and received by the department, a registration number will be issued to qualified applicants. Then the subscriber will be able to obtain a TennesseeAnytime subscriber account to file online. See instructions above.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2001-2002 fiscal year, the department collected $7.4 billion in state taxes and fees. In addition to collecting state taxes, more than $1.4 billion dollars of local sales tax was collected by the department for local governments during the 2001-2002 fiscal year. In addition to collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log onto www.Tennessee.gov/revenue.