Taxpayers in Tennessee who have $10,000 or more in sales and use tax payments must make electronic payments and starting for tax periods after 2003 they must electronically file corresponding tax returns. A penalty of $500 may be incurred for each return not filed electronically when they are required by law to submit returns electronically. The Commissioner of Revenue has the authority to grant qualifying taxpayers permission to file returns by means other than electronically. (State Legal Summary, 2003.)