TN Franchise & Excise Tax Return - FAE170 - Schedule I

[Abhay Bhargava]

Schedule I is a new schedule in the TN Forms FAE170 and FAE174 return packages beginning with the 12/31/2024 tax year.  TN DOR has updated its Franchise and Excise Tax Manual (Dec. 2024) and Chapter 5 includes guidance (beginning on pg. 106), including filing FAQs, about the new Schedule I for Form FAE170.

Very clearly it states that a disregarded entity should be included in Schedule I.  If filing entity is partnership with 2 or more partners OR a Sub Chapter S Corp, Proseries is still populating Schedule I.  This is a GROSS error on part of Proseries.  Spent an hour and 45 mins with - Ms. Mikaila.  She is wonderful support and went thru every single screen we can see if populated incorrectly that is causing this Schedule I to be incorrect but all was correct.  She looked at the investigations and said proseries says it's working as designed.  However, I say firmly that DESIGN IS WRONG.

Schedule I should ONLY be populated if reporting entry is or one of it's subsidiary is disregarded entity.  If that is not the case then Schedule I should be blank.

I urge Proseries to fix it asap as TN Society CPA forum has others who are talking Proseries being WRONG.

Please call me with questions.

[sjrcpa]

Remove your phone number.

No one from Intuit will call you.

This is a public forum.

[dd4vols]

I posted about this earlier. But the problem is not entirely on ProSeries.  I do tons of TN F&E returns, along with sales taxes and other Tennessee returns.  The basic filing portal for the Tennessee Dept of Revenue is called TNTAP. 

The state's TNTAP program auto-populates the name of the entity filling the return on line 1 under NAME, no matter the classification of the entity. Partnership, Corp, S Corp.  All !

I have been in a piss fight with the TDOR for 2 days about this, and they just keep trying to explain to me what a Disregarded Entity is.  Not looking at their program at all. Just had another round with them. I'll keep you updated.

[dd4vols]

So this is the response I got from TDOR today (02/13/25)

"Thank you for contacting the Tennessee Department of Revenue. I understand your concern. Not every line has to be filed out on the return and just because the business name is on line 1 doesn't make it disregarded. 
 
On Sch I line 1 the system does not let you enter any information. Its blocked out.
The same holds true on the paper return. 
The return instructions say List all disregarded single member LLCs... . Since line 1 is the parent and that field is blocked out you can only enter disregarded entities starting on line 2.  It does not mean the entity on line 1 is disregarded but all the lines under that would mean they are disregarded. "

The difference between TNTAP and ProSeries is that you CAN NOT enter anything on line 1 at TNTAP.  He actually showed me a pic of a paper return, and sure enough, all of line 1 is blacked out, except the filing company's name. 

he would never admit that the filing instructions were not in total agreement with TNTAP

[Abhay Bhargava]

Awesome.  At least now we know is that line 1 is title.  Wish they put title outside data box so it doesn't cause confusion.  Thanks very much for your help.

[dd4vols]

here is what it's supposed to look like. Per the State of Tennessee.  I am a member of the TSCPA..where is this forum you speak of?

 

[Abhay Bhargava]

https://talk.tscpa.com/home

See if you can join.  Would love to have someone active, involved be part of it.

Thanks
Abhay