Texas Franchise Tax Filing Guide: 2024 UPDATE

There have been some changes in Texas franchise tax law that you need to know about.
In this video, you'll learn:
👉 What is TX franchise tax
👉 The changes in the laws in 2024
👉 Who needs to worry about it
👉 Step-by-step walkthrough for how to fill out the EZ Computational Report
👉 Step-by-step walkthrough for how to fill out the Long Form Report
Important Links:
** TX Comptroller website: **
comptroller.te...
CLARIFICATION: "For reports originally due on or after Jan. 1, 2024, a taxable entity whose annualized total revenue is less than or equal to $2.47 million is no longer required to file a No Tax Due Report. However, the entity is still required to file Form 05-102, Public Information Report (PDF) or Form 05-167, Ownership Information Report (PDF)." comptroller.te...
** TX franchise tax extension information **
comptroller.te...
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• Texas Franchise Tax Fi...
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[@LedgerGurus]

If you're ready to hand over filing sales tax and franchise tax to someone else, let the experts at LedgerGurus help you. We have a whole team that is dedicated to this stuff. Click here to learn more about our services: ledgergurus.com/ecommerce-accounting-services/sales-tax/?

[@tcaldwell5330]

I received a letter & began my business in 2023 it hasn’t received any revenue do I still have to file? If so what form the PIR or OIR. I understand the money threshold but isn’t this for all businesses in TX I have an LLC…so confused

[@LedgerGurus]

This should help answer your question: comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php

[@tcaldwell5330]

For anyone still unsure you still have to file. I filed the OIR form. I called the comptroller office & got an awesome agent who walked me through the entire process online.

[@potomoc11]

Great video. Very informative. I read the instructions on the Comptroller's website and they indicate that even if your revenues are below $2.47M, you still have to file a PIR or face a $50 fine. Can you clarify that? Thanks.

[@LedgerGurus]

That is correct. comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php#:~:text=Taxpayers%20Under%20the%20No%20Tax,a%20No%20Tax%20Due%20Report.

[@user-np1gf1hx5p]

@@LedgerGurus Form 05-102, Public Information Report (PDF) or Form 05-167, Ownership Information Report (PDF), I'm confused on which one I need to file?

[@whatsthegoodstuffwtgs8651]

@@LedgerGurusi filed the PIR late and it did not ask me for the $50 payment. Am i set?

[@LedgerGurus]

@@whatsthegoodstuffwtgs8651 Often the penalty is assessed after the return is processed. Keep an eye on your account. The state will also send you a letter.

[@Islamic11110]

Ma'am they want at the beginning xt number and i am not finding it on every document can you tell me where is XT number ??

[@LedgerGurus]

You should be able to find it by logging into your portal on the TX comptroller website.

[@Islamic11110]

And also ma'am i made for ecomerce and whole year i didn't do any sales so what should I do I have zero sales

[@LedgerGurus]

This should help answer your question: comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php

[@ECXOL7]

My company is registered in 2022 with total revenue for 2023 is less than the threshold $2.47M. Do I need to fill the EZ computation or Information report only.

[@LedgerGurus]

Probably just an information report.

[@superjtrdr]

where do you subtract cost of goods sold on the EZ form?

[@LedgerGurus]

A taxable entity that elects to use the E-Z Computation is not eligible for the cost of goods sold, compensation or other margin deductions and may not claim any credits (Texas Tax Code Section 171.1016). comptroller.texas.gov/taxes/franchise/faq/reports-payments.php#:~:text=A%20taxable%20entity%20that%20elects,Texas%20Tax%20Code%20Section%20171.1016).

[@conversionestates4483]

What about the last minute and late people (asking for a friend)? Is there a fee for filing after 5/15/24?

[@LedgerGurus]

Yes, there is a penalty for filing after the due date. comptroller.texas.gov/taxes/franchise/#:~:text=Penalties%20and%20Interest&text=A%20%2450%20penalty%20is%20assessed,5%20percent%20penalty%20is%20assessed.

[@anshukabathla868]

My organisation is non profit organisations . Do I need file franchise tax? Please clarify

[@LedgerGurus]

A nonprofit corporation organized under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) is exempt from franchise and sales taxes. comptroller.texas.gov/taxes/publications/96-1045.php#:~:text=A%20nonprofit%20corporation%20organized%20under,from%20franchise%20and%20sales%20taxes.

[@2292kika]

I got this message "what is that mean No period obligations found for taxpayer" when I try to fill and information report ? any idea why they won't let fill it ? I open my llc Sep 2019 and I'ma veteran. Please advice.

[@alejandrachavez2096]

That's the same thing that happened to me, do you know if we have to do something about it or are we fine?

[@LedgerGurus]

You need to call the state because there is an issue with your account.

[@Sahil_momand]

Hello Ma’am Hope this email finds you well We are E-Commerce and we have fulfilled our franchise tax few months ago, but recently we received an email regarding franchise tax. I will share the email which we received, kindly give us information what they need. Your Franchise Tax Account is Not Current Our records show your entity’s franchise tax account is not current. You are scheduled to receive a Texas Notice of Intent to Forfeit Right to Transact Business, which will be mailed to you on or after Aug. 6, 2024. Consequences If the Comptroller’s office forfeits your entity's right to transact business in Texas, the forfeiture will be reflected on the Comptroller’s public website; your entity will generally be denied the right to sue or defend in a Texas court; and each officer, director, partner, member or owner may be liable for certain debts of the entity. We are waiting for your response Thanks

[@LedgerGurus]

I encourage you to schedule a consultation with one of our sales tax experts. They can walk you through exactly what you need to do. You can schedule that here: calendly.com/ledgergurus-sales-tax/?