A “common owner” is an individual or entity that owns more than 50 percent interest (directly or indirectly) of each member in a combined group. The common owner of the group may or may not be the reporting entity filing the group’s franchise tax report.
To prevent processing delays, file the common owner information report with, or before, your franchise tax report, if required. Filing it after you file your tax report will delay processing.
Before you can electronically file a common owner information report, you need
When a combined group has a temporary credit for business loss carryforward preserved for any member of the group, the group’s reporting entity must file the Common Owner Report by the group’s franchise tax report due date using one of these methods:
Effective Jan. 1, 2024, if the combined group’s annualized total revenue is less than or equal to the no tax due threshold, the combined group is no longer required to file a No Tax Due Report, an Affiliate Schedule, or a Common Owner Information Report for that year. However, each individual member of the combined group that is organized in Texas or has nexus in Texas must file a Public Information Report or an Ownership Information Report.
Use one of these methods when filing the Common Owner Information Report:
The report must be filed even if the group is not claiming the credit on the report. The filing of the group’s franchise tax report is incomplete without the Common Owner Report.
File common owner changes and corrections by completing and mailing Form 05-177, Common Owner Information Report with a letter explaining the reason for the change or correction. Be sure your letter includes the following:
Mail to:
Texas Comptroller of Public AccountsPlease note that you cannot make corrections through Webfile or your approved third-party software provider.