January 23, 2008
FOR IMMEDIATE RELEASE
Texas Comptroller Announces a Revised Due Date for Certain Initial Texas Franchise Tax Reports.
On January 18, 2008, the Comptroller of Public Accounts of the State of Texas (the “Comptroller”)
announced a revised due date for initial Texas franchise tax reports originally due from January 1, 2008
through April 30, 2008. The revised due date for all such returns is now May 1, 2008.
It is important to note that the original due date of the initial report will be used to
determine the accounting period on which the report will be based. The accounting period
end date must be at least 60 days before the due date. The Comptroller provides the
following example on her website:
Assume a corporation formed on October 20, 2006 has an initial report originally due on January 17, 2008.
The due date for this initial report has been changed to May 1, 2008. If the corporation has a December
31st accounting year end, the corporation uses December 31, 2006 as the ending date for the report, as
December 31, 2007 is not 60 days before the original due date of January 17, 2008.
Observation
This announcement will not apply to combined group filings. Under the revised franchise tax,
taxable entities that are part of an affiliated group engaged in a unitary business must file a combined
group report. A newly created taxable entity that is a member of a combined group is not required to
report on a separate initial report, and a combined group that would not otherwise be required to file
an initial report will not be required to file an initial report solely because a newly created entity
has become a member of the combined group. As a result, this announcement will apply only to tax
entities that are stand-alone and are not included in any combined group filing.
34 Tex. Admin. Code § 3.584(c)(1)(H) (2007) (Comptroller, Margin: Reports and Payments).
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