The State of Tennessee has recently issued a Revenue Review indicating it is enhancing its processes in assuring tax compliance and will be increasing its efforts to identify and collect delinquent use tax and business tax. The Revenue Review discusses the applicability of Public Law 86-272 to the Tennessee Franchise Tax. The Attorney General’s Office issued an opinion that Public Law 86-272 does not apply to its franchise tax as it is a tax that is measured by a taxpayer’s net worth, and 86-272 only applies to state taxes that are measured by net income. The Revenue Review advises that any taxpayers who have not registered for franchise taxes assuming protection under 86-272 do so immediately. The Department of Revenue will be contacting many professional service firms to request a review of their records for use tax liabilities. The state first plans on contacting dentists and doctors and will follow by contacting other firms in the coming months. The state is in the process of reviewing companies that have not filed business tax returns for past years. The Revenue Review also discussed the benefits of participating in the state’s voluntary disclosure program. The department offers a voluntary disclosure program where a business or consumer can report past tax liabilities and register for Tennessee taxes. By entering into such an agreement, the state will limit prior liability and abate penalties. (Revenue Review, Tennessee Department of Revenue, January 2005)