Penalties may be waived in delinquency or deficiency cases if the taxpayer has a reasonable cause that is listed in state statute. See Tenn. Code Ann Section 67-1-803(c) and (d). Waivers can also be issued in delinquency cases if the taxpayer has a good two-year filing record with the Department and no willful disregard of the law or gross negligence is involved. The Attorney General must approve a waiver of penalty of $100,000 or more.
To submit a penalty waiver, log into the Tennessee Taxpayer Access Point (TNTAP), access your account, and select Petition for Penalty Waiver.