Best Tax Lawyers in Nashville

About Tax Law in Nashville, United States

Tax law in Nashville operates at three levels - federal, state, and local. Federal tax matters are governed by the Internal Revenue Code and enforced by the Internal Revenue Service. At the state level, Tennessee administers business-related taxes, sales and use taxes, and property taxes through the Tennessee Department of Revenue and local county offices. Metro Nashville - Davidson County enforces local business licensing, local privilege and business taxes, property assessments, and local sales tax components. Nashville is a growing commercial and service center, so individuals and businesses commonly face issues related to payroll taxes, sales tax compliance, business registration and franchise taxes, tax audits, tax debts and liens, and property tax appeals.

Why You May Need a Lawyer

Tax law can be complex and consequences for mistakes can be severe. You may need a tax lawyer in Nashville for many reasons, including:

- IRS or Tennessee Department of Revenue audits and examinations - to respond to notices, negotiate positions, and represent you at meetings.

- Tax debt collection - to negotiate installment agreements, offers in compromise, or to resolve liens and levies.

- Criminal tax investigations - to defend against allegations of tax fraud, evasion, or failure to file.

- Business formation and tax planning - to structure entities to minimize tax exposure while complying with state and federal law.

- Sales and use tax compliance - to evaluate nexus, register to collect tax, correct past compliance problems, and handle audits related to sales tax and marketplace facilitator rules.

- Payroll tax disputes - to resolve employer payroll tax assessments, worker classification disputes, or FICA-related matters.

- Property tax appeals - to contest property tax assessments and seek reductions in Metro Nashville property valuations.

- Multistate tax issues - for businesses that operate across state lines and face apportionment, nexus, and withholding questions.

- Estate and gift tax matters - for planning and resolving disputes over federal estate tax, Tennessee-specific estate matters, and estate administration tax issues.

- Nonprofit and tax-exempt matters - to apply for, defend, or maintain tax-exempt status for charities and nonprofit organizations.

Local Laws Overview

Key local and state tax rules that often matter in Nashville include:

- No broad individual wage income tax at the state level - Tennessee does not tax wages as a general state income tax. Tennessee previously taxed certain investment income under the Hall income tax, but that tax was phased out and fully repealed in 2021.

- Sales and use tax - Tennessee imposes a state sales tax and allows local governments to add local sales tax. Businesses must register and collect the correct combined rate and comply with rules for exempt sales, resale certificates, and use tax reporting. Economic nexus rules require some out-of-state sellers and marketplace facilitators to collect Tennessee sales tax if they meet activity thresholds.

- Business taxes - Tennessee applies franchise and excise taxes to many entities and municipalities may require business privilege or business taxes and local business licenses. Metro Nashville has its own business tax registration and reporting requirements that apply in addition to state filings.

- Property tax - Property in Davidson County is assessed by local officials. Property owners can appeal assessments through local administrative processes and, if necessary, the courts.

- Payroll taxes and employer obligations - Employers must withhold federal payroll taxes and meet state unemployment insurance and withholding requirements. Worker classification - employee versus independent contractor - is an important compliance issue that affects tax liabilities.

- Collection remedies - Both the IRS and the state can impose liens, levies, wage garnishments, and other collection actions. Local governments can place municipal liens or deny licenses for unpaid taxes in some circumstances.

- Statutes of limitation - Federal and state rules set time limits for assessments and refund claims. These time limits vary by the nature of the issue - for example, the IRS generally has a three-year assessment period, with exceptions for fraud and large omissions.

Frequently Asked Questions

Do I need a tax attorney or a CPA for my tax issue?

A CPA is well-suited for tax preparation, planning, and accounting issues. A tax attorney is necessary when legal advocacy or privileged legal advice is needed - for example, in audits, tax litigation, criminal investigations, or complex negotiations with the IRS or state revenue department. In many matters both professionals help as a team - the CPA handles numbers and filings while the attorney handles negotiations and legal strategy.

What should I do if I get a notice from the IRS or Tennessee Department of Revenue?

Read the notice carefully to understand the deadline and the issue. Do not ignore it. Gather the related documents - tax returns, receipts, bank statements, prior correspondence - and consider contacting a tax attorney or CPA before responding if the notice concerns an audit, large assessment, or potential criminal exposure. Respond by the deadline or request additional time if you need it.

How long does the IRS have to audit or assess additional tax?

Generally, the IRS has three years from the date you file a return to assess additional tax. That period can extend to six years for substantial omissions of income. There is no statute of limitation for fraud or for returns not filed. Tennessee and local governments have their own deadlines for assessments and refunds - consult an attorney or the relevant agency for specifics.

What are my options if I owe back taxes I cannot pay?

Options include setting up installment agreements, submitting an offer in compromise to settle for less than the full amount in limited cases, seeking currently not collectible status if you cannot pay at all, or negotiating penalty abatements. Bankruptcy may discharge some types of tax debt in limited circumstances. A tax lawyer can evaluate which options are realistic and help negotiate with the IRS or state agency.

Can the IRS or the state put a lien on my Nashville property?

Yes. If tax debts go unpaid, the IRS or state can file a tax lien against your property in Davidson County, which creates a public claim on assets. A lien does not transfer ownership but can interfere with selling or refinancing property. In severe cases, the IRS or state can levy bank accounts or seize assets. Prompt action and legal help can often prevent or resolve liens.

How do sales tax rules apply to online sales and marketplace platforms in Tennessee?

After the Supreme Court s Wayfair decision, Tennessee and other states adopted economic nexus rules that may require remote sellers and marketplace facilitators to collect and remit sales tax if they exceed certain sales or transaction thresholds. Marketplace facilitators may be responsible for collecting tax for sales on their platforms. Determine whether your business meets nexus thresholds and register to collect and remit the correct tax.

Can I appeal my property tax assessment in Metro Nashville?

Yes. Property owners can appeal assessed values through the local administrative process. There are deadlines and procedural steps to follow, such as filing an appeal or request for review with the assessor or appeals board. Gather recent appraisals, sales comparables, and documentation of property conditions to support your appeal. A lawyer or experienced property tax consultant can assist with strategy and hearings.

What happens if I am audited and an issue is found?

If an audit results in a proposed adjustment, you may agree to the changes, pay the tax and related penalties and interest, or contest the findings through appeal procedures. For federal issues, you can appeal within the IRS and then potentially to the U.S. Tax Court. For state issues, follow Tennessee Department of Revenue appeal procedures and administrative hearings. A tax attorney can represent you in appeals and trials.

Are there penalties for failing to register a business or collect local taxes in Nashville?

Yes. Failure to register a business, collect sales tax, or pay business privilege taxes can lead to penalties, interest, and back taxes owing. Local governments may also suspend permits or business licenses until obligations are resolved. Proactive compliance and voluntary disclosures can reduce penalties in some cases.

What should I bring to an initial meeting with a tax attorney?

Bring copies of the relevant tax returns, any notices or correspondence from the IRS or state revenue department, bank statements, payroll records, business formation documents, sales records, prior audit reports or assessments, and a brief timeline of events. Be prepared to explain your goals - reduce tax liability, contest an assessment, negotiate a payment plan, or defend against criminal allegations. This will allow the attorney to assess the situation quickly and advise next steps.

Additional Resources

When seeking information or assistance, consider these resources and organizations in addition to private counsel:

- Internal Revenue Service - federal tax administration and taxpayer assistance services.

- Tennessee Department of Revenue - state tax rules, registration portals, and taxpayer services.

- Metro Nashville - Davidson County Finance Department or Business Tax Division - local business tax requirements and licenses.

- Davidson County Assessor of Property - information on property assessments and appeals.

- IRS Taxpayer Advocate Service - independent organization that helps taxpayers resolve problems with the IRS when normal channels fail.

- Tennessee Bar Association and Nashville Bar Association - lawyer referral services and directories to find qualified tax attorneys.

- Legal Aid organizations - such as Legal Aid Society of Middle Tennessee and the Cumberlands - may offer low-income assistance or referrals for qualifying individuals.

- Low Income Taxpayer Clinics - clinics that provide representation before the IRS for low-income taxpayers or those who do not speak English fluently.

- Certified Public Accountants and Enrolled Agents - professionals who represent taxpayers before the IRS for audits, collections, and appeals.

Next Steps

If you need legal assistance with a tax matter in Nashville, consider the following practical steps:

- Act quickly - tax notices and collection actions have strict deadlines. Ignoring notices can limit your options and increase penalties.

- Gather records - collect tax returns, notices, financial statements, payroll records, business documents, and any prior correspondence with tax authorities.

- Assess the issue - determine whether the matter is primarily a preparation issue, a compliance problem, a debt-collection matter, or a potential criminal issue. Your approach will vary accordingly.

- Consult a tax professional - contact a tax attorney with experience in the specific area you face - audits, collections, criminal defense, business taxation, or property tax appeals. Consider a CPA or enrolled agent for accounting and filing issues.

- Prepare questions for the attorney - ask about experience with similar cases, likely outcomes, fee structure - hourly, flat fee, or contingency where allowed - and the anticipated timeline.

- Consider limited-scope engagements - if your need is narrow, ask about limited-scope representation to control costs while getting targeted legal help.

- Respond to agencies - if you have deadlines, ask your attorney to prepare timely responses or request extensions rather than missing deadlines.

- Explore affordable options - if cost is a concern, ask about payment plans, pro bono resources, or low income taxpayer clinics that may assist with IRS representation.

- Get the engagement letter in writing - confirm the scope of work, fees, who will handle the matter, and how communications will be handled.

Tax issues can be stressful, but prompt, informed action improves your chances of a favorable outcome. If you are unsure where to start, a brief initial consultation with a qualified Nashville tax attorney or tax professional will help you understand your options and next steps.