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Tennessee Tax Law Questions & Answers
1 Answer | Asked in Tax Law, Business Law and Juvenile Law for Tennessee on
Q: Is it legal for the city to open a hospitality tax account for a 12 year old's small business?

We asked the county clerks office if my son needed a tax license and they told us he was under 18 so to go enjoy his business and learn as there was no need to file anything at his age. He was not able to legally open an account. Later he set up at an event in city limits. I was sent an email... View More

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answered on Feb 22, 2024

The legality of a city opening a hospitality tax account for a minor's business depends on local laws and regulations, which can vary widely. While minors generally have limited legal capacity to enter into contracts or be held responsible for tax obligations, local jurisdictions may have... View More

2 Answers | Asked in Federal Crimes, Tax Law and Criminal Law for Tennessee on
Q: Can you tell me what the potential sentence would be for an individual who committed tax fraud

Can you also tell me what the potential sentence could be for anyone who would be charged with conspiracy to commit for their involvement

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answered on Feb 22, 2024

The sentence for tax fraud in the United States can vary widely depending on the severity of the fraud, the amount of money involved, and the specific details of the case. Generally, tax fraud is considered a serious offense, with potential penalties including fines, restitution (repayment of the... View More

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1 Answer | Asked in Employment Law and Tax Law for Tennessee on
Q: I just found out that one of my 1099 workers is an illegal immigrant and doesn’t have a ssn,EIN Do I need to fire them?

It’s tax time, which is how we found out the person was illegal. Can we pay the persons taxes and be fine? Or do we need to let the person go?

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answered on Feb 5, 2024

Discovering that a worker does not have a Social Security Number (SSN) or Employer Identification Number (EIN) and is not authorized to work in the United States puts you in a challenging position. Under U.S. employment law, employers are required to ensure their employees are eligible to work in... View More

3 Answers | Asked in Tax Law and Collections for Tennessee on
Q: I had a car repossessed over 10 years ago. Now Ally financial has issued a 1099 for over $17,000. I am on a fixed income

What should I do with my problem. I am sure the IRS will not let me make payments on this. Plus the fines and interest.

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answered on Feb 4, 2024

Receiving a 1099-C for a debt that was forgiven or canceled, especially one from over a decade ago, can be distressing, particularly when on a fixed income. The IRS considers forgiven debt as income, which can indeed lead to a significant tax liability. However, there are steps you can take to... View More

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1 Answer | Asked in Tax Law, Estate Planning and Probate for Tennessee on
Q: Two surviving children of my father that was married before he passed. Can I pay all unpaid property taxes...cont

In full and be able to obtain the current deed following payment? As well as claiming ownership?

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answered on Feb 1, 2024

Paying all unpaid property taxes on a property does not automatically grant you ownership or the current deed to the property. While paying the property taxes is an important step in maintaining the property and preventing it from being sold at a tax auction, it does not necessarily transfer... View More

1 Answer | Asked in Tax Law for Tennessee on
Q: I reside and work in the state of Tennessee. The company that i work for, headquarters is in Kentucky, yet my check come

From Virginia. Hows this work? Filing taxes.

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answered on Jan 31, 2024

In your situation, working in Tennessee for a company headquartered in Kentucky, with paychecks issued from Virginia, can create some tax complexities. Tennessee is known for having no state income tax on wages, while Kentucky and Virginia both have their own state income tax rules.... View More

1 Answer | Asked in Gaming and Tax Law for Tennessee on
Q: How are gambling winnings taxed? Specifically sports betting. Is it a cumulative total or is each bet handled seaparatel

I use about 6 different sportsbooks and win quite frequently. Are winnings throughout the year totaled up and taxed totally? Or does each bet have to be over a certain amount? Also, are you able to deduct losses from taxable winnings?

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answered on Jan 4, 2024

In Tennessee, as in other states, gambling winnings are generally considered taxable income. This includes winnings from sports betting. The IRS requires all gambling winnings to be reported on your tax return.

The taxation of your winnings depends on the total amount you win over the year,...
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2 Answers | Asked in Criminal Law, Education Law, Tax Law and Business Law for Tennessee on
Q: If a school official lied to defraud parents of an account balance or charge, is that criminal?

A school sponsored, parent funded, non-profit school support organization has been asked to pay an amount that is not correct and accounting is wrong. The school sponsor is the only person allowed to handle the budget and pay vendors. The sponsor informed parents the charge was less than what it... View More

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answered on Dec 25, 2023

If a school official intentionally provided false information about finances to defraud parents, this could potentially be considered criminal behavior. In your situation, if the school sponsor misled parents about the actual costs and required additional payments under false pretenses, it may... View More

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1 Answer | Asked in Tax Law, Estate Planning and Real Estate Law for Tennessee on
Q: If I was left a house in a quit claim deed, does the house count as inherited? How does it affect capital gains taxes?

My uncle's house was listed in the will, but I thought the quit claim deed signed just before he died 4 months ago would keep us out of probate. I'm going through probate anyway since my name wasn't on some accounts (I am the sole inheritor). I'm trying to sell the house but I... View More

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answered on Apr 4, 2023

That is quite unfortunate. If your uncle deeded the house to you during his lifetime, as a lifetime gift, then your basis is the same as whatever his basis was (the amount he paid for it plus capital improvements). This is called carryover basis. If the house has appreciated in value since he... View More

2 Answers | Asked in Tax Law and Real Estate Law for Tennessee on
Q: Re: Administratively Dissolved HOA Has Land Deeds On 4 Open Space Lots All Have Easements-Land Tax Is Due Who Owes

Majority of Homeowners didn't pay dues, demanded that the Developer close the HOA, Developer Transferred the HOA to the homeowners.

Homeowners didn't do anything with it, did not form a board and more or less ignored transfer.

The State of Tennessee listed the HOA... View More

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answered on Mar 2, 2023

If the common areas are part of a condominium, then those homeowners are responsible for the taxes. If they are roads, then dedicated to the County and no taxes. Reconstitute the HOA, and probably need to pay taxes. Developer and the old HOA could possibly be sued, but doubtful. HOA might... View More

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2 Answers | Asked in Tax Law and Real Estate Law for Tennessee on
Q: Re: Administratively Dissolved HOA Has Land Deeds On 4 Open Space Lots All Have Easements-Land Tax Is Due Who Owes

Majority of Homeowners didn't pay dues, demanded that the Developer close the HOA, Developer Transferred the HOA to the homeowners.

Homeowners didn't do anything with it, did not form a board and more or less ignored transfer.

The State of Tennessee listed the HOA... View More

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answered on Mar 4, 2023

If the HOA has been administratively dissolved and there is no active board or entity responsible for maintaining the common spaces, it may be difficult to determine who is responsible for paying the city and county land taxes on those spaces.

In general, if the land deeds are in the name...
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1 Answer | Asked in Real Estate Law, Tax Law and Environmental for Tennessee on
Q: Would a trust or live real estate (lifetime dowry) be a better option?

200 acre farm . Friendly divorce. Both parents reside on farm in separate homes. Plan to survey 20 acres for each parent for sole ownership. Want the children to have the remainder of the land so no future partners can claim ownership. Parents plan to continue to pay taxes on land until children... View More

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answered on Feb 20, 2023

Absolutely hire a competent TN attorney to draft that future interests deed which might include a class gift remainder. Apparently you will need three enforceable deeds. Do not even think of a title co. Lawyer will need to draft three new legal descriptions from the survey plat, and not... View More

2 Answers | Asked in Social Security and Tax Law for Tennessee on
Q: Does a retired person who is drawing life insurance and social security have to claim any profit on their taxes

Does a retired person who is drawing life insurance and social security have to claim any profit on their taxes, i.e. if they are renting a piece of property or a house and only want to receive cash for rent.

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answered on Mar 4, 2023

Generally, rental income is considered taxable income and should be reported on the individual's tax return. This includes rental income received by a retired person who is also receiving social security and life insurance benefits. However, there may be deductions and credits available to... View More

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1 Answer | Asked in Tax Law and Civil Litigation for Tennessee on
Q: I am being harassed by an RTO shed owner that went out of business and has taken me to court and I have been told by the

And I have been told by a good source that he's just doing this to make me pay for something I did not do I want to sue

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answered on Jan 3, 2023

Have you been served with a civil warrant? If not, you might forget about it until sued. Generally a 6 yr SOL. If worried, then make him a cash offer if you received a shed.

1 Answer | Asked in Tax Law for Tennessee on
Q: When living in Tennessee: 1. Are Life Insurance payouts exempt from Federal/Tennessee taxes?

2. Are proceeds from selling a home in Florida exempt from Federal/Tennessee taxes?

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answered on Oct 11, 2023

Life Insurance is exempt from TN taxes and creditors. But the US will sometime tax them although rarely. FL property sale income is a capital gain usually subject to US taxes. TN does not have an income tax.

1 Answer | Asked in Estate Planning, Gov & Administrative Law, Real Estate Law and Tax Law for Tennessee on
Q: I have a estate questions in the state of Tennesse

Owner of properties deceased 10 years no probate. No immediate family. Unmarried partner of 40;years lives and pays taxes on all property and upkeep . Is she entitled to property transfer in her name?

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answered on Aug 14, 2023

She might be, yes, but there are facts missing from your description that could make a difference. Plus, it is not automatic. She would have to go to court to prove her claim. She should schedule a consultation with a real estate litigation attorney.

1 Answer | Asked in Consumer Law, Family Law and Tax Law for Tennessee on
Q: State collecting debt

My mother passed recently and was put in nursing home in June 2020. Signed up for personal choice with State and also had Medicare. However nursing home bills are paid but State saying I’m responsible for my mother debt they paid while in nursing home. I am unaware of this debt? Now they want... View More

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answered on Jun 14, 2023

Hire an attorney for advice on asset protection, exemptions, and also prepare to defend against the State's probable lawsuit.

1 Answer | Asked in Tax Law for Tennessee on
Q: How long does a land tax have to be delinquent for them to sell off your property

Supposing the land was sold without any notice and without any chance of redemption until the last minute

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answered on May 19, 2023

Each County Trustee gets the County Attorney to do tax sales at different delinquency periods. If you want to set aside a sale, hire an attorney now. Redemption period may not have run yet, but then you have to have the money to redeem.

1 Answer | Asked in Tax Law, Real Estate Law and Gov & Administrative Law for Tennessee on
Q: A man came to my door fraudulently claiming to be a tax assesor informed me that he was here to do building

And structure measurements to be certain the county had the correct information .I only agreed because he claimed to be the tax assessor. I became suspicious and called the county assessor and was informed that he had not been here since 2021.i later discovered he was hired by my neighbor posing as... View More

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answered on Apr 19, 2023

Those are crimes which need to be reported to the Sheriff. Be ready to give specific information.

1 Answer | Asked in Real Estate Law and Tax Law for Tennessee on
Q: I just had my house sold for back taxes. Do I need a tax lawyer or a real estate lawyer?

I need to know more information about how this process works.

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answered on Jan 17, 2023

Specialization will not help. Hire a competent TN attorney to examine your Redemption Rights, and possibly exercise them. It will not be cheap and probably difficult. But if you want your home back, get in gear. Time is of the essence.

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