The Texas Comptroller has announced the extension of the Texas franchise tax filing and payment deadlines due to the ongoing COVID-19 situation.
Annual Texas franchise tax reports are now due on July 15, 2020. All Texas franchise taxpayers will receive this extension automatically. Taxpayers may also request additional extensions.
- Mandatory EFT taxpayers. Taxpayers who the Texas Comptroller requires to pay their Texas franchise taxes by electronic funds transfer (EFT) may file an extension request on or before July 15, 2020 to receive an extension of time until August 15, 2020 to file their annual Texas franchise tax report and pay all tax due. These taxpayers must pay either 90 percent of the tax due for the current year or 100 percent of the tax they owed for their prior year along with their extension request in order to receive the extension. These taxpayers may then file a second extension request on or before August 15, 2020 to receive an extension of time until January 15, 2021 to file their annual Texas franchise tax report. These taxpayers must pay all tax due with this second extension request.
- All other taxpayers. Taxpayers who are not required to pay their Texas franchise tax by EFT may file an extension request on or before July 15, 2020 and receive an extension of time until January 15, 2021 to file their annual Texas franchise tax report and pay all tax due . These taxpayers must pay either 90 percent of the tax due for the current year or 100 percent of the amount of tax they owed for the prior year along with their extension request in order to receive the extension.
As discussed in our previous blog entry, the Texas Comptroller is offering assistance to taxpayers affected by coronavirus (COVID-19). Seay & Traphagan, PLLC will continue to update this blog with any additional information that becomes available regarding Texas tax law during social distancing. Taxpayers with additional questions should contact a Texas tax professional, such as a tax attorney, to clarify their obligations.
