Texas Franchise Tax: Hot Topics for 2011 Filings Due May 15th!
- Franchise Tax Web Service
- Passive Entity Reporting
- Apportionment (single-sales factor vs. MTC 3-factor)
- Temporary Credit Election
- Extensions and Mandatory EFT
- Combined Group Elections
In addition to the above, I would say that with Texas, you need to do everything you can to properly file all of the correct forms to avoid receiving a notice later. Remember to file your public information reports along with the franchise tax return. Also, if you are filing a combined return, remember to attach the correct affiliate schedule to the combined return.
From a calculation standpoint, make sure to utilize the correct subtraction (wages, cost of goods sold or 30%) with the original return.
If you are looking for an easy way to estimate your company's franchise tax liability, check out Texas' online calculator.
Texas also provides some additional guidance regarding what forms to file and how to E-file on its website.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.