Tax clearance reqt for Memphis rental - out of state investor

[Gloria Grotjan]

Need help and advice! I have had a single family home rental in Memphis since 2011 and never had a tax issue. I am an out of state investor. My LLC was recently revoked and put into inactive status because TN Dept of Revenue says I need to file a County and Business Tax Return. I need to provide a tax clearance letter in order to get a reinstatement certificate for my LLC. I need to understand what is involved in filing this and if this is something I can do myself or need to get a CPA or attorney involved? Trying to figure out least costly approach in resolving this. Any input much appreciated.

[Tony Haas]

Gloria,

Based on the excerpt below from the TN Business Tax Guide (google this for your reference), operators of residential and non-residential buildings other than hotels, motels, or rooming houses are exempt. I would recommend reviewing the guide to determine if your LLC has any activity that would cause it to be subject to the TN business tax. I would also call the TNDOR to discuss how to resolve if you determime the LLC is exempt.

Good luck!

Other Exemptions

The following types of activities are exempt from business tax on receipts from services

but are subject to business tax on receipts

from sales of tangible personal property.

[Tenn. Code Ann. § 67-4-708(3)C) and Tenn.

Comp. R. & Regs. 1320-4-5-.16]:

+ Medical and allied health services,

except services of persons making

dentures and artificial teeth.

+ Religious, charitable, legal, educational,

domestic, accounting services,

architecture, engineering, surveying,

and veterinary services.

+ Services rendered by nonprofit

membership organizations for the

promotion of the interest of the

members.

+ Nonprofit educational and research

agencies.

+ Public utilities as defined under Tenn.

Code Ann. § 65-4-101.

+ Banks, building and loan associations,

mortgage bankers, and other similar

organizations.

+ Insurance companies and holding

companies.

+ Operators of residential and non-

residential buildings other than hotels,

motels, or rooming houses.

+ Persons operating camps and trailer

parks where charges are made for rental

only of real property are exempt from

the tax. Persons renting trailers to

transients, or selling tangible personal

property, or making separate charges

for specific services are not exempt.

+ Lessors of agricultural, forestry, mining,

oil, public utility, and airport properties.

+ Farmers providing qualifying services to

other farmers.