In the last few weeks, most business owners have been racing to get their federal tax returns extended or filed by the April deadline. Even though these tax calculations have not changed much, there still are a few things to keep in mind. Be sure to note, even if your business falls below this threshold, you still have to file a Texas Franchise tax return. If applicable, businesses can alternatively offset revenue by taking a deduction for either Cost of Goods Sold or Compensation both have specific rules that apply.
No state better illustrates this than Texas. There are many unique rules for Texas Franchise tax returns, including numerous differences from federal law.
It can even be complicated just figuring out which return should be filed for each year and determining the correct federal information needed to complete the report.
For example, a calendar-year taxpayer will file a federal income tax return and a Texas Franchise Report, which is due May 15, Most taxpayers can request a filing extension to November Interestingly, Texas has not yet allowed the filing of these second extensions on its website without a payment.
Fiscal-Year Taxpayers The due dates and corresponding Texas Franchise Reports to file each year can be even more confusing for fiscal-year taxpayers. For these filers, the accounting period used is the one ending for federal income tax purposes in the calendar year prior to the calendar year the report is due.
For example, a taxpayer with a fiscal-year ending March 31, will file a federal income tax return utilizing the information for the fiscal year ending March 31, Thus, the Texas Franchise Report for any given year is 2 years after the federal income tax return year.
Utilizing the incorrect accounting period or filing the wrong year report can cause you to waste time and effort addressing administrative notices. Have Questions or Comments? If you have any questions about this media item, we'd like to hear your opinion. Please share your thoughts with us.The Texas Annual Franchise Tax Return and Public Information Report still must be received by the State Comptroller’s office by May 16, , to keep your account in “Active” status.
As of October 1, , any Annual Franchise Tax Return and Public Information Report . The above information is required by Section of the Tax Code for each corporation or limited liability company that files a Texas Franchise Tax Report.
Use additional sheets for . Texas Franchise Tax Report Information and Instructions PDF No Tax Due The law requires Texas Comptroller of Public Accounts PO Box Instead they submit an information report when they file and pay their annual franchise tax with the Texas Comptroller of Public Accounts The report is notnbsp Texas Franchise Tax Report Forms for A Texas report year covers an accounting period that ends in Texas instructions state that the accounting period end date should be the last accounting period end date for federal income tax purposes in the year before the year the report is originally due.
The above information is required by Section of the Tax Code for each corporation or limited liability company that files a Texas Franchise Tax Report. Use .
Corporation Franchise Tax Reports Tax: The franchise tax rates are: % ) for most entities, % ) for qualifying wholesalers and retailers, and % ) for those entities with $10 million or less in annualized Total Revenue using the E-Z computation.