taxes

Franchise Tax Extensions of Time to File

The Comptroller’s office will grant an extension of time to file a franchise tax report upon receipt of a timely request. Timely means submitted or postmarked on or before the due date of the original report.

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.

See the Type of Extension section below for important details and to learn how to request an extension.

Due Dates

If a due date falls on a Saturday, Sunday or legal holiday, the next working day becomes the due date.

How to Request an Extension

Type of Extension

Annual reports for entities not required to pay franchise tax by Electronic Funds Transfer (EFT)

Use franchise tax WebFile or file Form 05-164, Texas Franchise Tax Extension Request, along with the appropriate payment, on or before the original due date of the report.

The extension payment must be at least 90 percent of the tax that will be due with the report filed on or before Nov. 15, or 100 percent of the tax reported as due on the prior franchise tax report (provided the prior report was filed on or before May 14 of the year for which the extension is requested).

A taxable entity that became subject to the franchise tax during the previous year cannot use the 100 percent payment option to file its first annual report. Also, a separate entity that was included in a combined group report in the prior year cannot use the 100 percent payment option.

If the extension request does not meet the payment requirements when the report is filed, penalty and interest will apply to any part of the 90 percent of the tax not paid by the original due date and to any part of the 10 percent of the tax not paid by the extended due date.

Nov. 15 is the extended due date.

Entities required to pay franchise tax by EFT – FIRST Extension
  • Entities that paid $10,000 or more in franchise taxes in the previous state fiscal year are required to pay using EFT.
  • Entities that paid $10,000 to $99,999.99 can meet the EFT extension payment requirement by using franchise tax WebFile to make their payment on or before the due date.
  • Entities that paid $100,000 or more in franchise taxes in the previous state fiscal year are required to pay using TEXNET. These entities will request an extension by making a timely TEXNET payment using tax type payment code 13080 (Franchise Tax Extension). The report year is the year the payment is due. Payment information must be completed by 6 p.m. (CT) on the business day prior to the due date. See the TEXNET Payment Instructions Booklet (PDF) for additional information.

Do not submit Form 05-164, Texas Franchise Tax Extension Request, when using TEXNET and payment code 13080.

Aug. 15 is the extended due date.

Entities Required to Pay Franchise Tax by EFT – SECOND Extension

Request a second extension by making a timely TEXNET payment, using tax type code 13080 (Franchise Tax Extension), or use franchise tax WebFile to make the second extension payment on or before Aug. 15.

The payment should equal the balance of the amount of tax that will be reported as due on Nov. 15. If all of the tax due was paid with the entity's first extension, use franchise tax WebFile or submit Form 05-164, Texas Franchise Tax Extension Request, to request a second extension.

Nov. 15 is the extended due date.

Final Reports

Request an extension for a final report by filing Form 05-164, Texas Franchise Tax Extension Request, along with the appropriate payment, submitted or postmarked on or before the original due date of the report.

An entity required to pay franchise tax by EFT should request a final extension through TEXNET, using tax payment code 13080, on or before the due date of the final report. The extension payment must be at least 90 percent of the tax that will be due with the report.

If the extension request does not meet the payment requirements when the report is filed, penalty and interest will apply to any part of the 90 percent of the tax not paid by the original due date and to any part of the 10 percent of the tax not paid by the extended due date.

The extended due date is 45 days after the original due date of the final report.