Tennessee Inheritance Tax – When is the Tennessee inheritance tax due to the Tennessee Department of Revenue?

Posted on Sep 15 2013 9:57PM by Attorney, Jason A. Lee

The inheritance tax is due to the Tennessee Department of Revenue nine months after the death of an individual who owes the tax.  T.C.A. § 67-8-419(a) provides the following:


(a) The tax imposed by this part and part 3 of this chapter shall be due and payable nine (9) months after the death of the transferor, or at the expiration of the additional time granted by the commissioner pursuant to § 67-8-409, but such tax may be paid sooner, if assessment thereof has been completed, and if the personal representative desires to make payment.


It is important to note that the Commissioner of the Tennessee Department of Revenue has the ability to provide exceptions when the tax payment within the nine month time period would cause an undue hardship on the estate.  The Department of Revenue and the representatives of the estate can enter into an agreement for payment of the inheritance tax in installments or come up with another plan that is appropriate to handle the situation.  T.C.A. §67-8-419(b) provides as follows:


(b) When it is shown to the satisfaction of the commissioner that the payment on the due date of any part of the amount determined to be due would impose undue hardship upon the estate, or would necessitate the sale of any portion of the estate at a sacrifice, or at an inadequate price, the commissioner may extend the time for the payment of any such part of the tax, or may enter into an agreement with the representative of the estate for the payment of the tax due thereon in installments. Such an agreement for the payment of the tax in installments, or for the deferment of payments, shall not affect the liability of the estate for interest. The running of the statute of limitations for assessment and collection, as provided in § 67-1-1501, shall be suspended for the period of any such extension. If an extension is granted, the commissioner may, if the commissioner deems it necessary, require the executor to furnish security for the payment of the amount in respect of which the extension is granted in accordance with the terms of the extension.


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TAGS: Probate Process, Tennessee Inheritance Tax, Taxes
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Jason A. Lee is a Member of Burrow Lee, PLLC. Contact Jason at 615-540-1004 or jlee@burrowlee.com for an initial consultation on wills estate planning and probate issues.

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Tennessee Wills and Estates Blog
Jason A. Lee, Member of Burrow Lee, PLLC
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Nashville, TN 37203
Phone: 615-540-1004
E-mail: jlee@burrowlee.com