Texas Franchise Tax: Hot Topics for 2011 Filings Due May 15th!

The Texas Comptroller's Office published what it thinks are the Hot Topics for the 2011 [1] franchise tax filings in its recent Tax Policy News.  [1] The following items are addressed:

1. Franchise Tax Web Service
2. Passive Entity Reporting
3. Apportionment (single-sales factor vs. MTC 3-factor)
4. Temporary Credit Election
5. Extensions and Mandatory EFT
6. 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. [2] Texas also provides some additional guidance regarding what forms to file and how to E-file on its website. [3]