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Waiver Requests for Late Reports and Payments Frequently Asked Questions
When are tax penalties assessed?
- A $50 late filing fee/penalty may be assessed on returns filed after the due date. See Late Filing Penalties (PDF).
- A 5 percent penalty is assessed on tax due the day after the due date, and a second 5 percent penalty is assessed on tax due the 31st day after the due date.
- A 10 percent penalty is added when a determination billing becomes final.
- An additional 5 percent penalty is imposed on businesses not complying with mandatory electronic reporting and requirements.
When is interest assessed?
Interest starts accruing on the 61st day after the due date.
Why must Electronic Data Interchange (EDI) reports that include payment be received before the due date to be considered timely?
A successful EDI return with payment must be received by 2:30 p.m. (CT) the bank business day before the due date so the funds are in our office by due date. EDI payments comply with electronic payment requirements.
Why must TEXNET payments be submitted before the due date to be considered timely?
Due to payment processing deadlines, TEXNET debit payments above $1,000,000 must be submitted before 8 p.m. (CT) the bank business day before the due date. For payments of $1,000,000 or less, a payor has until 10:00 a.m. (CT) on the due date to initiate the transaction in the TEXNET System. TEXNET ACH credit and wire transfer payments must be deposited in our bank account by the due date to be considered timely. Read more about electronic payment information and see the schedule of due dates in our TEXNET Electronic Payment Instructions Booklet (PDF).
Why was I assessed a penalty when I had a franchise tax extension?
If you did not meet the payment criteria for the extension after filing your return, a penalty is due on the late portion of your payment. Generally, for an extension to be valid, 100 percent of the tax paid in the prior year, or 90 percent of the tax that will be due with the current year's report, must be paid on or before the original due date of the report. Entities required to file a combined report must follow special extension rules. Please read extension information for franchise tax.
What recourse do I have if my request is denied?
Our response will advise that you have 10 days to request an administrative appeal of the denial of all or part of your original request. To appeal, you must:
- submit your request in writing,
- state the reasons you disagree with the denial, and
- submit new or additional documentation upon which you rely to support your appeal.
What recourse do I have if my administrative appeal is denied?
Our response will tell you how to request a hearing.
Do I have to use your form to request a waiver?
No, but please include the information listed on our forms to allow us to review your request without delays.