February 25, 2021

Texas Comptroller’s Office Extends Franchise Tax Deadline

(AUSTIN) — In response to the recent winter storm and power outages in the state, Texas Comptroller Glenn Hegar announced today that his agency is automatically extending the due date for 2021 franchise tax reports from May 15 to June 15. The extension aligns the agency with the Internal Revenue Service (IRS), which earlier this week extended the April 15 tax-filing and payment deadline to June 15 for all Texas residents and businesses.

The due date extension applies to all franchise taxpayers. It is automatic, and taxpayers do not need to file any additional forms.

"To assist businesses coping with the unprecedented winter storm and resulting power outages and water shortages, we thought it appropriate to align the state's franchise tax deadline with the IRS deadline, just as we did last year when the IRS moved its filing deadline back because of the pandemic," Hegar said. "Texas businesses and business owners should be focused on recovery efforts and the health and well-being of their families, employees and communities, and I am hopeful this action gives them that added flexibility."

The information aggregated from taxpayers' federal tax returns comprises the building blocks for their Texas franchise tax returns. The Texas franchise tax is imposed on each taxable entity formed or organized in Texas or doing business in Texas.

Franchise taxpayers who need an extension beyond the June 15 date have these options:

• Non-electronic funds transfer (non-EFT) taxpayers who cannot file by June 15 may file an extension request on or before June 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request. Non-EFT taxpayers who request an extension have until Nov. 15 to file their report and pay the remainder of the tax due.
• On or before June 15, taxpayers who are mandatory EFT payers may request an extension of time to file to Aug. 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request. On or before Aug. 15, EFT taxpayers may request a second extension of time to file their report and must pay the remainder of any tax due with their extension request. The Aug. 15 extension request extends the report due date to Nov. 15. Any payments made after Aug. 15 will be subject to penalty and interest.