“Taxes: Of life’s two certainties, the only one for which you can get an automatic extension.” – Author Unknown.
Texas businesses were granted a reprieve from confusion. Comptroller Susan Combs extended the deadline for Texas businesses to file franchise taxes from May 15th to June 16th. Ms. Combs cited overwhelming tax payer confusion over the new franchise tax laws as her reason for the 30 day extension. “We want to make sure businesses and tax practitioners have adequate time to make sure they’re complying with the revised franchise tax,” Ms. Combs explained. “Because they’re dealing with new calculations and enhanced technology for filing reports, the one month penalty waiver will help taxpayers accurately complete their returns…”
The Dallas Morning News reported that an estimated 900,000 businesses are subject to the state tax, but that only 300,000 are actually expected to pay due to an exemption for businesses with less than $300,000 in annual gross revenue or total tax liability of less than $1,000. The new franchise tax is expected to generate $6 billion a year for Texas coffers.
How does the new franchise tax affect your business?
Adam W. Vanek
(214) 890-0991
avanek@tiptonjoneslaw.com
