Tennessee Application for Exemption
Extracted from PDF file 2016-tennessee-form-fae-exempt.pdf, last modified February 2012
Application for ExemptionInstructions Print Reset APPLICATION FOR EXEMPTION FRANCHISE AND EXCISE TAXES RV-F1319201 INTERNET (8-15) COMPLETE THIS APPLICATION TO REQUEST EXEMPT STATUS FROM FRANCHISE AND EXCISE TAXES 1. REASON FOR APPLICATION 2. TAX PERIOD COVERED New Exemption Start: End: 3. Effective date of registration with the Secretary of State: SOS Number 4. ENTITY NAME AND PHYSICAL LOCATION 5. ENTITY MAILING ADDRESS Name: Name: Street: Street: City, State, Zip: City, State, Zip: 6. BUSINESS TELEPHONE NUMBER: ( ) Fax #: ( ) 7. Email: 8. Current Franchise and Excise Tax Account Number: 9. ENTITY TYPE Limited Partnership Limited Liability Company FEIN: Limited Liability Partnership Other Non-corporate Entity (Specify): 10. IDENTIFY TENNESSEE CODE SECTION AND REASON FOR REQUESTING FRANCHISE AND EXCISE TAX EXEMPTION. (Please check one) (See reverse side for Exemption Criteria) Venture Capital Fund [67-4-2008(a)(5)] - Dealing in securities primarily in non-publicly traded companies and capital is primarily derived from investments neither related to nor affiliated with the fund. LLC/LP/LLP Farming/Personal Residence [67-4-2008(a)(6)] - 66.67% of income is earned from either farming or holding personal residences, including contiguous acreage, where at least one partner or member resides, and is 95% owned by persons who are relatives. LLC/LP Affordable Housing [67-4-2008(a)(8)] - Must have allocation of low-income tax credits and must have an extended low-income housing commitment for each building. Obligated Member Entity [67-4-2008(a)(9)] - Appropriate documentation must be filed with the Secretary of State as an obligated member or owner of an obligated member providing limited liability protection. REMIC or FASIT [67-4-2008(a)(10)] - Real estate mortgage investment conduit or financial asset securitization investment trust whose purpose is asset-backed securitization of debt obligations. Family-Owned Non-corporate Entity with Farming/Passive Investment Income [67-4-2008(a)(11)] - At least 95% family-owned and substantially all of income from passive investment income or farming. Entities having no income may qualify for this exemption if all other requirements are met. LLC/LP/LLP Security 3rd Party Indebtedness [67-4-2008(a)(7)] Facilities Owned by the Armed Forces [67-4-2008(a)(16)] Diversified Investment Fund [67-4-2008(a)(12)] Qualified Low-Income Community Historic Structure owner or lessee [67-4-2008(a)(17)] 11. If the taxpayer is an out-of-state entity that will be doing business in Tennessee, does it have a location or office in Tennessee? Yes No If yes, identify the city and county: 12. The statements made on this application are true to the best of my knowledge and belief. (NOTE: This application must be signed by the individual owner, a member, or partner.) Sign Here: (Signature and Date) Revenue Use Only: Place Bar Code Here INSTRUCTIONS: APPLICATION FOR EXEMPTION FROM FRANCHISE AND EXCISE TAXES Tennessee Code Annotated Section 67-4-2008 provides exemption from Tennessee’s Franchise and Excise Taxes under certain situations. The form on the reverse side should be completed by entities requesting exemption under provision of these laws. Please see the descriptions of exempt entities shown below to determine if your entity qualifies for exemption. Each entity is required to make its initial application for exempt status on this form and must also submit a renewal application annually. This annual certification is due each year by the 15th day of the fourth month following the end of the entity's fiscal year. Please mail completed applications and annual renewals to: Tennessee Department of Revenue, 500 Deaderick Street, Nashville, TN 37242. For questions or assistance with this form, please call (615) 253-0700, Monday through Friday, from 8:00-4:30, Central time or visit www.tn.gov/revenue for more detailed information. Venture Capital Funds [Tenn. Code Ann. Section 67-4-2008(a)(5)]: An LLC, LLP, or LP formed and operated exclusively for buying, holding, and/or selling securities, including debt securities, primarily in non-publicly traded companies, on its own behalf and not as a broker. The capital of the fund is primarily (over 50%) derived from investments by entities and/or individuals which are not affiliated with the fund. A “non-publicly traded company” is a business entity that is not a “publicly traded company,” which is defined as (a) a national securities exchange registered under Section 6 of the Securities Exchange Act of 1934 or exempted from registration under such act by 15 U.S.C. Section 78f because of the limited volume of transactions; (b) a foreign securities exchange operating under principles analogous to a national securities exchange; (c) a regional or local exchange; (d) an interdealer quotation system that regularly disseminates firm buy or sell quotations by identified brokers or dealers by electronic means or otherwise; or (e) on a secondary market or the substantial equivalent thereof, if taking into account all of the facts and circumstances, the owners are readily able to buy, sell or exchange their ownership interest in a manner that is comparable, economically, to trading on an exchange. Farming/Personal Residence [Tenn. Code Ann. Section 67-4-2008(a)(6)]: An LLC, LP, or LLP where at least 66.67% of the activity of the entity is either farming or holding one or more personal residences, including acreage contiguous to the dwelling, where one or more of the members or partners reside. At least 95% of the entity must be owned either by persons who are relatives of one another or by trusts for their benefit. Natural persons shall be considered “relatives” by blood or adoption if they are descended from a common ancestor and their relationship with each other is that of a first cousin or closer than that of a first cousin, or if they are spouses of one another. Affordable Housing [Tenn. Code Ann. Section 67-4-2008(a)(8)]: The LLC or LP must have received an allocation of low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code of 1986, as amended. An “extended low-income housing commitment” as defined in Section 42(h)(6) (B) of the Internal Revenue Code of 1986, as amended, must be in effect with respect to each residential building owned by the entity for the period covered by the return. Attach separate Affordable Housing Certification Form. Obligated Member [Tenn. Code Ann. Section 67-4-2008(a)(9)]: In order to qualify as an exempt obligated member entity the appropriate documentation required for each of the entity’s members, partners or owners to waive their limited liability protection shall be filed with the Tennessee Secretary of State on or before the first day of the first otherwise taxable year for which the entity wishes to claim exemption. This does not relieve the obligated member entity from filing an initial Application for Exemption with the Department of Revenue within 60 days of the beginning of the first fiscal year for which the person claims the exemption or from submitting a renewal application annually by the date on which a return would otherwise be due were it not for the exemption. To the extent that any obligated member, or any owner of an obligated member, provides limited liability protection, the obligated member entity shall owe the taxes otherwise imposed by the franchise and excise tax statutes on the portion of income and equity attributable to such obligated member. Ownership includes any form of ownership, whether in whole, in part, direct or indirect. Also, estates, trusts that are not taxpayers, nonprofit entities, or other entities exempt under this section, shall not be deemed to provide limited liability protection. REMIC or FASIT [Tenn. Code Ann. Section 67-4-2008(a)(10)]: An entity which (a) is classified as a partnership or trust in accordance with the federal regulations and rulings promulgated under 26 U.S.C. Section 7701, or has elected to be treated as a real estate mortgage investment conduit (REMIC) under 26 U.S.C. Section 860D, or as a financial asset securitization investment trust (FASIT) under 26 U.S.C. Section 860L, or a business trust, as defined in Section 48-101-202(a), when the commercial domicile of the trustee is not in Tennessee; and (b) the sole purpose of the entity, except for foreclosures and dispositions of the assets of foreclosures, is the asset-backed securitization of debt obligations, such as first or second mortgages, including home equity loans, trade receivables, whether an open account or evidenced by a note or installment or conditional sales contract, obligations substituted for trade receivables, credit card receivables, personal property leases treated as debt for purposes of the Internal Revenue Code of 1986, as amended, automobile loans or similar debt obligations. “Trade receivables” are defined as obligations arising from the sale of inventory in the ordinary course of business; Family-Owned Non-corporate Entity [Tenn. Code Ann. Section 67-4-2008(a)(11)]: Any family-owned non-corporate entity where substantially all the activity of the entity is either (a) the production of passive investment income; or (b) the combination of the production of passive investment income and farming. “Family-owned” means that at least 95% of the ownership units of the entity are owned by members of the family, which means, with respect to an individual, only an ancestor of such individual; the spouse or former spouse of such individual; a lineal descendent of such individual, of such individual’s spouse or former spouse, or of a parent of such individual; the spouse or former spouse of any lineal descendent; or the estate or trust of a deceased individual who, while living, qualified as a lineal descendent. A legally adopted child of an individual shall be treated as the child of such individual by blood. “Passive investment income” means gross receipts derived from royalties, rent from residential real estate, dividends, interest, annuities, and any gains from sales or exchanges of stock or securities. Entities with no income may qualify for this exemption if all other requirements are met. Third Party Indebtedness [Tenn. Code Ann. Section 67-4-2008(a)(7)]: On May 1, 1999, and at all times thereafter, the entity must be at least 98% owned by corporate members of an affiliated group, and be formed and operated for the exclusive purpose of acquiring notes from members of such affiliated group, accounts receivable, installment sale contracts, and similar evidence of indebtedness obtained in the ordinary course of business by one or more members of such affiliated group. The entity’s assets must directly or indirectly serve as security for third party borrowings or securitized indebtedness acquired by third parties. At least 80% of the income therefrom must be included in the income of a corporation doing business in Tennessee, and such income must be subject to the applicable franchise and excise tax allocation and apportionment rules. Diversified Investment Fund [Tenn. Code Ann. Section 67-4-2008(a)(12)]: Formed and operated for the purpose of buying, holding, or selling qualified investment securities on its own behalf. The capital of the fund must be primarily derived from investments by entities or individuals that are not affiliated with the fund. At least 90% of the fund’s income must consist of interest, dividends, and gains from the sale or exchange of such investment securities. Facilities Owned by the Armed Forces [Tenn. Code Ann. Section 67-4-2008(a)(16)]: Any entity owned directly, in whole or in part, by a branch of the United States Armed Forces. The entity must derive more than 50% of its gross income from the operation of facilities that are located on property owned or leased by the federal government and operated primarily for the benefit of member of the United States Armed Forces. Qualified Low-Income Community Historic Structure owner or lessee [Tenn. Code Ann. Section 67-4-2008(a)(17)]: The entity must own an interest in or be the lessee of a qualified low-income community historic structure. The entity must have no business operations or assets other than its investment or lease in the qualified low-income community historic structure, business operations and assets incidental to such investment or lease and de minimis other operations and assets.
Application for Exemption Franchise and Excise
More about the Tennessee Form FAE-Exempt Corporate Income Tax TY 2016
We last updated the Application for Exemption in February 2017, so this is the latest version of Form FAE-Exempt, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form FAE-Exempt directly from TaxFormFinder. You can print other Tennessee tax forms here.
Other Tennessee Corporate Income Tax Forms:
|Form Code||Form Name|
|Form INC-250||Individual Income Tax Return Kit|
|Form FAE-170||Franchise and Excise Tax Return Kit|
|FAE-Schd-170NC||Consolidated Apportionment Schedule|
|Form FAE-183||Franchise and Excise Tax Annual Exemption Renewal|
|Form FAE-Qtax||Quarterly Franchise, Excise Tax Declaration|
Tennessee usually releases forms for the current tax year between January and April. We last updated Tennessee Form FAE-Exempt from the Department of Revenue in February 2017.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Tennessee Form FAE-Exempt
We have a total of three past-year versions of Form FAE-Exempt in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Application for Exemption Franchise and Excise
Application for Exemption Franchise and Excise
Application for Extension Franchise and Excise Taxes
While we do our best to keep our list of Tennessee Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.