Current through September 24, 2024
(1) Credit will be
given by the Commissioner or Revenue to municipal or county officers for
dishonored checks or money orders tendered to such officers in payment of State
taxes, licenses and fees, under the following conditions:
(a) Credit will be allowed only for the
amount of the check or money order which represents the state tax, license, or
fee due and owing to the State regardless of the total amount of the check or
money order.
(b) The dishonored
check must show that it was deposited by the third business day after receipt;
that it was returned unpaid by the bank on which it was drawn; that it was
subsequently redeposited by the third business day after its return and that it
was returned unpaid for the second time. Where it is the practice of the
depositor's bank to automatically redeposit a dishonored check before it is
returned unpaid to the depositor, the date of such action as noted on the check
by the bank will be accepted as fulfilling the time requirement for
redeposit.
(c) The municipal or
county officer must initiate civil action to recover the amount of any
dishonored check or money order within thirty (30) calendar days after the
second or final return of the dishonored check or money order. If, prior to the
initiation of the civil action, it is deemed advisable to send a notice to the
taxpayer prior to initiating civil action, such notice must be mailed not later
than the fourth business day after final return of the check or money order and
the notice must include a limitation period for response not to exceed fifteen
(15) days. If such notice does not result in recovery, civil action must be
initiated within ten (10) calendar days after expiration of the period
specified in the notice.
(2) Any claim for credit submitted to the
Commissioner of Revenue by a municipal or county officer must be accompanied
by:
(a) A copy of the tax, license, or fee
document for which the dishonored check or money order was tendered.
(b) A copy of the 15-day notice, if
any.
(c) A copy of the document
initiating civil action by the municipal or county officer, along with the
results of the civil action.
(d) A
copy of the dishonored check or money order.
(e) The registration plate or privilege
license and/or copies of receipts for state taxes.
(3) If a registration plate or license cannot
be repossessed because the taxpayer cannot be located, a statement to this
effect must accompany the claim. If the taxpayer resides outside the county
where the dishonored check or money order was tendered, all available
information known to the county or municipal officer concerning such taxpayer
should be furnished with the claim.
(4) In all cases the municipal or county
officer is expected to make every reasonable effort to effect collection of any
dishonored check or money order. If unsuccessful in this, he is expected to
obtain the return of the license or registration plate if same can be found in
his county and take all necessary steps to prevent the operation of any
unlicensed business or unregistered motor vehicle.
(5) A claim for credit will be denied unless
filed with the Department of Revenue within twelve (12) months from the date
civil action was initiated.
Authority: T.C.A. §67-101 to implement
Section 9-108.
