Tennessee Code Title 67. Taxes and Licenses § 67-1-708

(1) The amount of such deficiency is the lesser of ten dollars ($10.00) or ten percent (10%) of the total tax due;

(2) The commissioner determines that the cost to the department to collect such deficiency would be equal to or greater than the tax collected; and

(3) The commissioner determines that the deficiency does not result from fraud or an intention to avoid payment.