taxes

Contract Examination Program

Texas Tax Code Section 111.0045 authorizes the Texas Comptroller of Public Accounts (Comptroller) to contract with individuals or firms to perform tax compliance examinations of sales tax and other taxes as deemed necessary for the State of Texas (Contract Examination Program). The legislative intent of the statute is to allow the Comptroller to increase coverage of the taxpayer population and to ensure that taxpayers are in compliance with tax laws. The Comptroller has established minimum qualifications and other reasonable requirements consistent with the Texas Tax Code, other applicable law and Title 34 of the Texas Administrative Code Section 3.3.

The Comptroller’s Request for Qualifications (RFQs) for Independent Examining Services are posted to the Electronic State Business Daily (ESBD) as needed, typically in spring of each year.

The following are the minimum qualifications for firms or individuals of the Contract Examination Program:

  1. A bachelor's degree from an accredited senior college or university with a minimum of twenty-four (24) hours of accounting, including six (6) hours of intermediate accounting and three (3) hours of auditing, or be licensed as a certified public accountant by the Texas State Board of Public Accountancy; and
  2. One (1) year of experience in Texas tax auditing, accounting or other Texas tax services preferred.

The Comptroller has sole discretion to select qualified individuals or entities to perform tax compliance examinations on an as-needed and as-assigned basis.

The following are the minimum requirements for performance and compensation information:

  • In performing assignments, selected contractors will complete all work necessary to identify the correct amount of tax that should have been reported by each taxpayer and provide the Comptroller’s office with the data and other information necessary to support any assessment of tax or refund of tax that results from the examination report. Selected contractors will also provide any time reports and other written documentation required by the Comptroller.
  • Selected contractors must complete all work and submit all examination reports, work papers and other deliverables no later than required under the terms of the proposed contract.
  • Selected contractors must meet professional conflict of interest standards and other standards established by the Comptroller to ensure the independence of each assignment. Contractors will also be subject to all the confidentiality and non-disclosure provisions of the Texas statutes that govern the actions of employees of the State of Texas.
  • Compensation for the initial year and any optional renewal year shall not exceed:
    • $211,200 for a firm with two (2) or more examiners assigned multiple packages.
    • $70,400, $88,000 or $105,600 per package assigned for individual examiners at the discretion of the Comptroller. Compensation for additional packages assigned to individual examiners will not exceed $105,600.
  • Contracts will be assigned an initial examination package containing a specific number of proposed taxpayers to be examined which will require a specific number of hours to complete, and Contractors will be compensated based on those numbers. The Comptroller will not make any payments in advance.

Disclaimer: This page does not constitute an offer or solicitation by the Comptroller for goods or services.

Potential contractors shall be expected to meet the terms, conditions, deadlines and other requirements stated in actual future RFQs that may be issued by the Comptroller.

Interested persons or firms are encouraged to review the documents associated with the most recent RFQ by clicking on the links below.

Texas Comptroller of Public Accounts Contacts