Documents Required Each Year Under Audit for Large Accounts

Rutherford County is subject to the requirements of TCA §67-5-402 regarding confidentiality of taxpayer records obtained during a Business Personal Property Tax Audit.

You may be required to provide all of the documents listed below, or only a partial listing.

1. Fixed Asset Listing (i.e., Depreciation Schedule). This listing should include a description of the assets, acquisition dates, and original cost to reconcile to the General Ledger. If the listing can be emailed to us prior to the field visit date, that would be preferable. Otherwise, a “hard copy” will be acceptable.

2. Trial Balance (General Ledger Summary)

3. “Chart of Accounts” utilized for the General Ledger. (If Trial Balance is not provided)

4. Income Statement i.e. Profit and Loss Statement.

5. Balance Sheet

6. Tennessee Business Franchise Excise Tax Return and supporting schedules (Including schedules G & N if applicable), or Federal Income Tax Return if the only business location is in Tennessee. If the taxpayer is a sole proprietorship, only the schedules pertaining to the business operations will be necessary.

7. Copies of the leases of equipment, furniture and fixtures, and vehicles at this location. Please include both Capital and Operating Leases, but please identify the Capital Leases, in order to avoid being “double assessed”.

8. Copy of the physical inventory taken closest to December 31st.  Also, if your company has a site map, plant schematic, floor diagram, etc., please provide a copy.

9. If the company has been purchased within the last four years, please also provide a copy of the purchase agreement, including allocation of asset cost. Please also provide copy of journal entry or initial accounting entry “booking” the purchase.