Notices of Forfeiture of Right to Transact Business Mailing this Week

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.”

http://www.window.state.tx.us/taxinfo/taxpnw/tpn2014/tpn1408.html

 

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.

David B. Willis

David B. Willis

Bryan Willis is a Tyler lawyer providing legal services across Texas in the areas of business law, litigation, probate, and estate planning.
David B. Willis

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