For many years the state of Tennessee has charged an annual Professional Privilege Tax to both resident and non-resident broker-dealers, agents and investment advisers. The revenue department recently sent delinquency notices to around 2,200 delinquent broker-dealers, agents and investment advisers, and provided the list to the Tennessee Securities Division. The Securities Division has announced that in January 2016 it will administratively suspend registrations for those who remain delinquent by holding their annual renewal applications. Those who find their renewal suspended could face consequences far more damaging than just owing the past-due taxes as it is unlawful to conduct securities or advisory business from or in Tennessee without being registered. Those finding themselves in this situation may be subject to civil, regulatory and criminal liability. Read the full alert from Bass, Berry & Sims PLC here.
To learn more about the Professional Privilege Tax, or to file a return, please visit the Tennessee Department of Revenue.