Statute of limitations for unpaid state TN tax

What is the name of your state? Tennessee. I received a request from the state tax authority advising me I had not paid the state tax on interest and dividends for tax yr. 2002. We were not aware of any tax on interest and dividends and had just moved to TN in late 2001. I am disabled, 60 yrs. old, and am wondering if there is any statute of limitations for this tax non-payment. During this period I was suing the government (SSA) for approval of my claim. It was approved by summary judgement of the judge back to the first day I applied for my disability in Feb. 2001.
What advice would you offer, they want nearly $2000!

Bigdad said:

What is the name of your state? Tennessee. I received a request from the state tax authority advising me I had not paid the state tax on interest and dividends for tax yr. 2002. We were not aware of any tax on interest and dividends and had just moved to TN in late 2001. I am disabled, 60 yrs. old, and am wondering if there is any statute of limitations for this tax non-payment. During this period I was suing the government (SSA) for approval of my claim. It was approved by summary judgement of the judge back to the first day I applied for my disability in Feb. 2001.
What advice would you offer, they want nearly $2000!

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Unless you had some really serious interest and dividend income, its unlikely that you owe anywhere near that amount. Take your 2002 federal and state tax returns and that letter to a local professional for assistance. Even cutting that in half to allow for interest and penalties, that would put you at 1000 in tax. That would put your interest and dividend income at somewhere around 20,000. To have interest and dividend income of 20,000 you would have to have investments of somewhere between 200,000 and 500,000....which would not include retirement accounts....and you wouldn't have been eligible for disability.

Statute of limitations

the facts that I presented are accurate. However, you provided no information about the statute of limitations for this tax non payment which was unintentional and certainly not fraudulent. thx.

Bigdad said:

the facts that I presented are accurate. However, you provided no information about the statute of limitations for this tax non payment which was unintentional and certainly not fraudulent. thx.

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No one said that you had committed any fraud. I was trying to explain to you that TN was probably asking for a much greater level of tax than was actually due. Many states have adopted shock tactics asking for huge amounts of tax in order to scare people into promptly resolving the issue.

I don't believe that any of the regulars on this forum practice in TN, and your question would be very state specific. That is why I suggested that you consult a local professional. You don't need a high priced CPA or Tax Attorney. A knowledgeable professional or EA would probably do.

Statute of limitations for tax nonpayment in Tenn

Thx for responding....I did have a great deal of interest and dividend income over the past few years and now that I am AWARE of the tax levied by TN on certain dividends (money market fund interest is really a dividend, and so falls into the taxable side). Their calculations are accurate based on my own evaluation of the numbers, but this was one of those instances where the taxpayer had no misintentions etc. The feds usually just look back 3 years, unless evidence of fraud or avoidance (then they never forget). I was wondering if TN had any statuatory limits on failure to pay taxes. My intention is to wait and see if they forget about it or get more serious. thx.....

If you didn't file a return, the statue wouldn't start running. Did you file a return?

If I remember right from when my parents lived in Memphis, Tennesee does not tax earned income, but does tax investment income. If you have not filed state income taxes since you moved there, you better get cracking to minimize interest and penalties for subsequent years. Now that they are aware of it, I seriously doubt if they will just forget it.

BTW the 3 yr thing for federal taxes is just the time period you have to file a return if due a refund. If you owe money, the time period is much longer (doesn't matter if there is evidence of fraud or not).

statuatory limits on not paying TN state tax

ths for the answers....no I didn't file any returns since moving here, as I didn't know of the requirement....not published or advertised. Sounds like getting busy and trying to negotiate some deal here. I had other issues concerning health, disability, and after winning my case I get the award which is fairly significant I had to go back and work out the distributions by year by comparing income, etc. Been a real mess...thx. again