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Tennessee sales tax notices

Got a letter from the Tennessee Department of Revenue? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Tennessee Department of Revenue (opens in a new tab)

Official notice guide (opens in a new tab)

Disagree with a notice?

Request an informal conference with the Department's Administrative Hearing Office in writing to dispute a Notice of Proposed Assessment. If you do not request one on time, the proposed assessment becomes final on the 31st day after the notice date. To contest a final assessment without paying, file suit in chancery court in Davidson County or the county where you live or principally do business.

Deadline: Informal conference: within 30 days from the date of the Notice of Proposed Assessment. Chancery court: 90 days to contest the final assessment.

Source: Tennessee Department of Revenue (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Final Demand for Payment

A final warning about an outstanding liability you were already notified of, sent before the Department starts collection action.

Why you got it

  • An earlier notice of an outstanding liability was not paid

What to do

  1. Pay the tax through your TNTAP account or by check to the address in the letter
  2. If you cannot pay, email Collection Services and reference the letter ID
  3. If penalties are included and you had good and reasonable cause, petition for a penalty waiver in TNTAP once the tax is paid. Interest cannot be waived

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Letters | Tennessee Department of Revenue (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Proposed Assessment (NOPA)

Sent when the Department estimates a return you did not file, when a filed return was not fully paid, or after an audit. It becomes final unless you request an informal conference in time.

Why you got it

  • A return was not filed and the Department generated an estimated return
  • A return was filed but the full balance was not paid
  • An audit was completed

What to do

  1. Check the notice against your records, including the period, the account, and whether you already filed
  2. For an estimated assessment, file the missing returns (even with no activity). If the business has closed, close the tax account in TNTAP
  3. Pay the tax in TNTAP or request a payment plan. If you had good and reasonable cause, then petition for a penalty waiver in TNTAP. Interest cannot be waived under Tennessee law
  4. If you disagree with the assessment, send a written informal conference request to the Administrative Hearing Office within 30 days of the notice date, with a copy of the notice. Otherwise it becomes final on the 31st day

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 30 days from the date of the notice to request an informal conference; otherwise it becomes final on the 31st day

Source: Letters | Tennessee Department of Revenue (opens in a new tab)

Assessment

Return Adjustment Notice

Not a bill. It explains that the Department adjusted a return you filed and lists the changes.

Why you got it

  • The Department found and corrected an issue on a filed return

What to do

  1. Review the changes listed in the letter against your return
  2. If you think the adjustment is wrong, use the contact information at the bottom of the letter to dispute it
  3. If it is right and created additional tax, pay the tax in TNTAP. If a penalty was added and you had good and reasonable cause, you can petition for a penalty waiver in TNTAP

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Letters | Tennessee Department of Revenue (opens in a new tab)

Registration

Changes to your permit or account: required registration, filing-frequency changes, revocation, or closure.

Registration

Filing Frequency Change

The Commissioner has changed the filing schedule for your sales and use tax account.

Why you got it

  • The Department decided a different filing frequency is in the state's best interest

What to do

  1. Note the new filing frequency and start filing on that schedule
  2. Watch for an updated certificate of registration in the mail

Source: Letters | Tennessee Department of Revenue (opens in a new tab)

Registration

Notice of Account Closure

Confirms a tax account was closed, either at your request or by the Department for inactivity.

Why you got it

  • You asked to close the account
  • The Department closed the account due to inactivity

What to do

  1. If you requested the closure, keep the letter for your records
  2. If the account was closed in error, call the registration team and ask to reopen it

Source: Letters | Tennessee Department of Revenue (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Intent to Levy and/or Lien

Warns that the Department may levy or garnish to collect unpaid tax if you do not pay within the time stated in the letter. It follows earlier attempts to contact you.

Why you got it

  • Tax liabilities stayed unpaid despite earlier contact from the Department

What to do

  1. Send the required payment with the notice within the time stated in the letter
  2. If you cannot pay, call the phone number on the letter right away

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Within the time period stated in the letter

Source: Letters | Tennessee Department of Revenue (opens in a new tab)

Ask for penalty relief

Penalties on a Tennessee notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Petition for Penalty Waiver

Petition for Waiver of Penalty
  1. File any missing returns and pay the tax first; the Department considers a waiver only after the tax is paid
  2. In TNTAP, choose 'Additional Actions' next to the account, then 'Petition for Penalty Waiver', and explain the good and reasonable cause
  3. If you cannot use TNTAP, email the Petition for Waiver of Penalty form to penalty.waivers@tn.gov
  4. If the waiver is granted after you have paid the penalty, the account is credited

What qualifies: Good and reasonable cause, not gross negligence or willful disregard of the law. This includes a timely filing and payment record for the prior two years, or causes such as illness, casualty or a return mailed on time but not received

Interest: Interest may not be waived under any circumstances under Tennessee law

Source: Tennessee Sales and Use Tax Manual (August 2026), Penalty Waivers (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Tennessee sales tax guide.

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