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Tennessee Free Printable Intangible Expense Application for Approval to Deduct Form IE-A for 2021 Tennessee Intangible Expense Application for Approval to Deduct Form IE-A

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Intangible Expense Application for Approval to Deduct Form IE-A
Intangible Expense Application for Approval to Deduct Form IE-A

Please submit to: TN Department of Revenue ATTN: Intangible Expense P.O. Box 190644 Nashville, TN 37219-0644 or to [email protected] Tennessee Department of Revenue Intangible Expense - Application for Approval to Deduct Form IE-A Taxpayer Name: ______________FEIN:_____________________ Intangible expense(s): ____________Federal form to be filed: ____________________ Name of affiliate in intangible transaction: ___________FEIN:____________________ Affiliate’s State/Country of incorporation or formation: _______ Date:_____________________ If such expenses are paid to more than one affiliate, either submit a separate application for the expenses paid to each affiliate or attach schedules to this form setting forth the information requested for each other affiliate. 1. List the type of "intangible property" for which the expense is incurred and provide the intangible asset’s cost value as reported on the affiliate’s balance sheet for the prior tax year or current tax year, or the fair market value, if available, and check the appropriate box Type of Intangible Property 2. Asset Value (Cost/FMV) COST FMV ☐ ☐ Does the affiliate use the proceeds from the expense transaction: (check all that apply)  To pay dividends  To loan back to a member of the affiliated group  Directly in affiliate's business operations  To invest in public securities  Other: ________________________________ 2a. If the affiliate loans the proceeds back to a member of the affiliated group, attach evidence showing that the loan is being or has been repaid. Include the amount of interest earned annually. 3. When the affiliate has to support, legally defend, or authorize use of "intangible property," does it use:  Its own employees  Employees of an affiliated group member  Outside professional legal counsel   Contract labor Other: _______ 3a. Provide a detailed explanation of how the affiliate supports, legally defends, and/or authorizes use of "intangible property." 4. Attach the following information:          a) Complete copy of the affiliate’s pro forma federal income tax return for prior tax year or current tax year, if available. b) To the extent known by the taxpayer, provide a list of the names and FEIN of other entities to which you are affiliated and subject to tax in TN that are also paying, accruing, or incurring intangible expenses to the affiliate. c) Description of the business activity of the affiliate to whom the expense is paid. d) List of the location(s) where the principal business activities of the affiliate take place. Specify the type of activity by location, and include the total number of full-time employees of affiliate. e) If the affiliate to whom the expense is paid has less than ten (10) employees, provide detailed information concerning these employee(s), including their names, titles, job descriptions, and work addresses. Describe key employees’ day-to-day activities and disclose if they also work for others. f) Detailed explanation of the means by which the intangible asset(s) were transferred to the affiliate, e.g., by the payment of cash, by journal entry, etc. Provide a copy of the transfer document if applicable. g) Detailed explanation of the method used to measure or determine the intangible expense, including schedules showing the calculation of the amount. Include any relevant documents evidencing independent examinations, studies, and/or analyses upon which you rely. h) Provide documentation showing actual payments of the expense. If the affiliate loans the proceeds back to the taxpayer, provide the details regarding this loan. i) Provide any other information that taxpayer deems relevant to demonstrate affiliate’s business purpose. POWER OF ATTORNEY Check YES if this taxpayer’s signature certifies that this tax preparer has the authority to execute this form on behalf of the taxpayer and is authorized to receive and inspect confidential tax information and to perform any and all acts relating to respective tax matters. ☐ YES I certify, under penalty of perjury, that the information provided in and with this application is true and correct to the best of my knowledge and understanding. _____________________________________________ Signature of Taxpayer, Officer or Representative ___________________ Title ______________ Date _____________________________________________ Tax Preparer’s Signature ___________________ Preparer’s PTIN ______________ Date INSTRUCTIONS FOR FORM IE-A OFFICE USE ONLY ► RV-F1406601 Intangible Expense – Application for Approval to Deduct When to complete Form IE-A This form should be completed by any taxpayer that is applying to deduct an intangible expense from its net earnings or losses on Schedule J of the franchise and excise tax return and that does not meet one of the exceptions – or “safe harbors” – listed in Tenn. Code Ann. § 67-41 2006(b)(2)(N)(i)(a)-(c). The application should be filed at least sixty (60) days prior to the original or extended due date of the taxpayer’s franchise, excise tax return. All information requested by this application must be attached. The information requested is not all inclusive, and taxpayer may be asked to submit additional documentation or clarification based on their specific facts and circumstances. Failure to submit an application will result in the disallowance of the intangible expense deduction. Failure to submit all requested information may result in the application being denied. Definitions "Intangible expense” means an expense related to, or in connection with, the acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are allowed or allowable as deductions or costs in determining federal taxable income on a separate entity basis. "Intangible expense" also means interest expenses directly or indirectly allowed as deductions or costs in determining federal taxable income on a separate entity basis to the extent such interest expenses are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property. "Intangible property" means patents, patent applications, trade names, trademarks, service marks, franchise rights, copyrights, licenses, research, formulas, designs, patterns, processes, formats, and similar types of intangible assets; Add-back provision: Intangible expenses paid to an affiliated business entity must be added to a taxpayer's net earnings or losses on Schedule J, Line 2. Failure to make this add-back on the initially-filed return may subject the taxpayer to a 50% negligence penalty. See Tenn. Code Ann. §§ 67-42006(b)(1)(K) and 67-1-804(b)(2). Deduction provision: Intangible expenses may be subsequently deducted from net earnings or losses provided it is shown by this application that the intangible expense, or portion thereof, that is paid, accrued, or incurred in connection with a transaction with one (1) or more affiliates did not have as its principal purpose the avoidance of the Tennessee excise tax. The commissioner's review of the taxpayer's application shall include the considerations outlined in Tenn. Code Ann. § 67-4-2014(c). Taxpayer should retain proper documentation to support any deduction taken on their return. Instructions for Completing this Application  Complete and submit this form at least sixty (60) days prior to the original or extended due date of the return; 1  Only include intangible expense deductions that do not meet one of the exceptions or safe harbors ;  Complete the responses to questions 1-3A. Check whichever boxes are applicable to the transaction; and  In responding to Question 4, please check the box, and submit the requested explanations and documents with the original application in one of the following formats: A) Paper Copies via US Mail, B) Electronic copies (excel, word, pdf) on a CD, or C) electronic submission to [email protected]  Any questions regarding the completion and submission of this application should be directed to the Department’s Audit Division at (615) 741-8499. Approval of application: If the Department approves the intangible expense deduction, or a portion thereof, such determination shall remain in effect so long as the taxpayer completes an annual certification that the facts and circumstances surrounding the transaction remain substantially unchanged. This certification is included on Schedule J of the franchise, excise tax return. See tax return instructions. The Department is authorized to require that the taxpayer reapply for approval to take the deduction beginning no sooner than five (5) years following the taxpayer's most recent approved application. Instructions for Deducting Approved Intangible Expenses  Add back all affiliated intangible expenses on Schedule J, line 2, of the return;  Take the intangible expense deduction on Schedule J, Line 25A, of the return only if the application has been filed;  Check the appropriate box on the Sch. J, Line 25A, deduction line, to indicate the deduction is based on Form IE-A – Failure to check the box on Schedule J will prevent the deduction amount from being processed; Denial of application: If the Department denies the deduction, or a portion thereof, and the taxpayer nevertheless deducts the disallowed intangible expense, the Department will assess the taxpayer any applicable tax, interest, and penalty resulting from the disallowance of such deduction. The taxpayer may contest any such assessment according to remedies found at Tenn. Code Ann. § 67-1-1801, et seq. Determination notification: The Department will notify the taxpayer by letter regarding its approval or denial of this application and the associated intangible expense deduction(s). If any portion of the intangible expense is approved for the deduction, the taxpayer should check the “Approved” box on Schedule J and enter the approved amount on its current and subsequent tax returns, as applicable. If the application is submitted to the Department at least sixty (60) days before the original or extended due date of the return and the Department has neither approved nor denied the application by the due date of the return, no penalty shall be assessed based on any disallowance of the deduction for intangible expenses, and no interest shall accrue on any such assessment from the due date of the return until 30 days after the date upon which the Department issues a denial of the application. 1 Exceptions include: a) the affiliate being in a foreign nation that is a signatory to a comprehensive income tax treaty with the United States; b) the affiliate, during the same tax year, having directly or indirectly paid such portion to an entity that is not an affiliate; and c) the affiliate being subject to a state’s income tax and computes the appropriate portion using the allocation or apportionment rules of that state. Refer to Form IE-N for more information and instructions on the exceptions or safe harbors.
Extracted from PDF file 2016-tennessee-form-fae-iea.pdf, last modified September 2012

More about the Tennessee Form FAE-IEA Corporate Income Tax

No longer on site

We last updated the Intangible Expense Application for Approval to Deduct Form IE-A in January 2019, and the latest form we have available is for tax year 2016. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Tennessee Department of Revenue. You can print other Tennessee tax forms here.

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Other Tennessee Corporate Income Tax Forms:

TaxFormFinder has an additional 65 Tennessee income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form FAE-170 Franchise and Excise Tax Return Kit
BUS-Schd-B Payment to Subcontractor Worksheet - Schedule B
Form BUS416-3 Municipal Business Tax Return - Classification 3
Form FAE-183 Franchise and Excise Tax Annual Exemption Renewal
Form FAE-Qtax Quarterly Franchise, Excise Tax Declaration

Download all TN tax forms View all 66 Tennessee Income Tax Forms

Form Sources:

Tennessee usually releases forms for the current tax year between January and April. We last updated Tennessee Form FAE-IEA from the Department of Revenue in January 2019.

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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-IEA

We have a total of three past-year versions of Form FAE-IEA in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2016 Form FAE-IEA

Intangible Expense Application for Approval to Deduct Form IE-A

2015 Form FAE-IEA

Intangible Expense Application for Approval to Deduct Form IE-A

Intangible Expense Application for Approval to Deduct Form IE-A 2012 Form FAE-IEA

Intangible Expense Application for Approval to Deduct Form IE-A

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