Blog Archives

Texas Comptroller’s Office Amnesty Program

If you have past-due reports and/or delinquent taxes or fees for sales tax, franchise tax, and other taxes administered by the Comptroller’s office, you may be eligible for the Amnesty Program. From June 12 through August 17, 2012, the Texas Comptroller of Public Accounts will waive penalties and interest for businesses that file delinquent tax reports and pay all taxes due, or amend reports that underreported taxes and pay the taxes due. Reports originally due before April 1, 2012, are eligible for this limited amnesty.

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What is the Texas Franchise Tax?

The Texas franchise tax is a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas. It is a tax on corporations and other business entities that do business in Texas.

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Texas Supreme Court Rules on Franchise Tax

The Texas Supreme Court ruled that the franchise tax does not impose a tax on a natural person’s share of partnership income, without voter approval, in violation of Article VIII, ยง8 (Bullock Amendment) of the Texas Constitution.

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Texas Tax Law Changes Effective 10/1/11

Recent changes to the Texas tax laws may affect your business. The late filing penalty for many Texas taxes has been increased and will be assessed. The one million threshold for Franchise Tax has been extended through December 31, 2013.

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Additional Texas Sales and Use Tax Changes

On June 10, 2011, the Texas House passed with amendments S1, the Senate omnibus fiscal matters bill, which contains myriad tax provisions. The proposed legislation provides that a taxpayer who in August 2013 is required to pay sale and use taxes on or before the 20th day of that month, who pays the taxes by electronic funds transfer, and who does not prepay as provided by state law, must remit an additional tax prepayment of 25% of the amount the taxpayer is otherwise required to remit during August 2013. The taxpayer can then take a credit in the amount of the additional payment against the next payment due.

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