In Tennessee, business taxpayers are required to complete and submit business tangible personal property (“BPP”) schedules to their local assessors prior to March 1 of each year.  See Tenn. Code Ann. § 67-5-903(b) (2006). A taxpayer may amend its tangible personal property schedule by filing an amended schedule with the assessor at any time until September 1 of the year following the tax year for which the original schedule was submitted.  See Tenn. Code Ann. § 67-5-903(e) (2006).

 Until most recently a “successor in interest” did not have any rights to amend original returns filed by their predecessor.  A ruling issued January 2009 now gives an acquiring entity during M&A activity the same legal right to amend returns for corrections.

In all BPP reporting States, returns are only required to be filed for assets owned as of the lien date within the taxing authority jurisdictional boundary.  Majority of the reporting states have statutes allowing amended returns to be filed for “correction of errors”.  All companies are guilty of “ghost assets” in their Property, Plant and Equipment (“PP&E”).  Those companies involved in M&A activity should take advantage of reviewing PP&E and thus their BPP returns for possible corrections and refunds. 

Contact Silver Oak Advisors for more information regarding particular States at info@silveroakadvisors.com or by phone at (877) 352-8616.

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