Yesterday the Texas Comptroller of Public Accounts, Glenn Hegar, announced the creation of the Texas Taxpayer Bill of Rights. These were promulgated as part of his goals to address taxpayer concerns in an efficient and respectful manner. I’ve listed the short version below, but you can access the Taxpayer Bill of Rights here.
- You have the RIGHT to Fair and Equitable Treatment
- You have the RIGHT to Privacy and Confidentiality
- You have the RIGHT to Understand the Taxes You Pay
- You have the RIGHT to Pay Only What You Owe
- You have the RIGHT to Representation
- You have the RIGHT to Contest a Decision
- You have the RIGHT to Request a Waiver of Penalties
- You have the RIGHT to Simpler Tax Filing
- You have the RIGHT to Courteous, Accessible Assistance from a Real Person
- You have the RIGHT to Know How Government Spends Your Tax Dollars
From the Comptroller’s Office:
On Aug. 8, the Comptroller will mail the “Texas Notice of Intent to Forfeit Right to Transact Business” form to taxable entities that failed to file the 2014 Franchise Tax report that was due May 15, 2014, if an extension of time to file was not requested and granted. The Comptroller will also send this notice to companies that failed to file a complete report or to pay the full amount due.
By law, the right to transact business cannot be forfeited before 45 days from the date the Comptroller mails the notice. During this period, when the company has received the notice of intent to forfeit, but the forfeiture has not yet occurred, the company’s status on the Comptroller’s Taxable Entity Search will remain as “active.”
It’s time to confirm your company filed its annual franchise tax reports and keep an eye on your mailbox. The excerpt above is from the Comptroller’s office which is mailing these notices this week. If you receive a notice of intent to forfeit your company’s right to transact business you should take action immediately.
After the 45 day period the Comptroller’s may forfeit a taxable entity’s right to transact business. This creates personal liability for each director, officer, or manager of the taxable entity for any debts incurred by the taxable entity after the date of forfeiture. Obviously this is a scenario your company will want to avoid.
Don’t forget to file your annual Texas Franchise Tax Annual Report this year. The due date is coming up on May 15th. Corporations, limited liability companies, professional corporations, partnerships, trusts, associations, and joint ventures are all subject to the tax and required to file an annual report.
You can find information about the Texas Franchise Tax by visiting the Comptroller’s website here. You can find forms and e-file your report on that website as well.
Failing to file your annual report could result in significant penalties including forfeiture of the right to transact business, the entities charter, and personal liability for officers and directors.