Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
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Glenn Hegar
Texas Comptroller of Public Accounts
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taxes

Texas Franchise Tax TAX NOTICES AND RESOLVING PROBLEMS WITH YOUR ACCOUNT

You may have received one of the following notices:

  • Form 05-211, Texas Notice of Intent to Forfeit Right to Transact Business
  • Form 05-212, Texas Notice of Forfeiture of Right to Transact Business
  • Form 05-213, Texas Notice of Forfeiture of Registration
  • Form 05-226, Texas Notice of Intent to Forfeit Right to Transact Business – Estimated Franchise Tax

If so, find the issue(s) shown on your notice from the list below for instructions to resolve each problem with your account.

Quick Resolution for Many Entities!

There are new filing requirements for 2024. The no tax due threshold is increased to $2.47 million and certain filing requirements are eliminated. If your annualized total revenue is at or below the no tax due threshold for the 2024 report, you only need to file a Public Information Report (PIR) or Ownership Information Report (OIR) to resolve your issue. There is no $50 penalty for late filing a PIR or OIR. Read more.


List of Issues Shown on Notices and How to Resolve

Long Form (05-158) or EZ (05-169), and/or Complete, Signed Public Information Report (Form 05-102), Not Filed

Issue:

  • No original franchise tax report and/or Public Information Report filed; or
  • Franchise tax report was not accepted. (You will be notified by letter regarding the reason for non-acceptance of your report.)

To resolve:

Long Form (05-158) or EZ (05-169), and/or Complete, Signed Ownership Information Report (Form 05-167), Not Filed

Issue:

  • No franchise tax report and/or Ownership Information Report filed; or
  • Franchise tax report was not accepted. (You will be notified by letter regarding the reason for non-acceptance of your report.)

To resolve:

Long Form (05-158) or EZ (05-169), Not Filed

Issue:

  • No franchise tax report filed; or
  • Franchise tax report was not accepted. (You will be notified by letter regarding the reason for non-acceptance of your report.)

To resolve:

Form 05-158A, Texas Franchise Tax Report - Page 1, Not Filed, or Form 05-158B, Texas Franchise Tax Report - Page 2, Not Filed

Issue:

  • Entities filing the long form report must file both pages 1 and 2 of this report.

To resolve:

NOTE: Webfile is not available for Franchise Tax Report - Page 1 or Franchise Tax Report - Page 2 as a stand-alone filing.

Form 05-160, Texas Franchise Tax Credits Summary Schedule, Not Filed

Issue:

To resolve:

NOTE: Webfile is not available for the Credits Summary Schedule as a stand-alone filing.

Form 05-166, Texas Franchise Tax Affiliate Schedule, Not Filed

Issue:

To resolve:

NOTE: Webfile is not available for the Affiliate Schedule as a stand-alone filing.

Form 05-166, Incomplete Affiliate Data on Affiliate Schedule

Issue:

To resolve:

NOTE: Webfile is not available for the Affiliate Schedule as a stand-alone filing.

Balance Due

Issue:

  • The entity filed the franchise tax report but did not pay the entire amount due. The amount due may include tax, penalty, interest or any combination of the three. The breakdown of the amount of tax, penalty and/or interest due is listed on the delinquent notice.

To resolve:

  • Pay the amount due.

Electronic payment options include:

Form 05-175, Tiered Partnership Report, Not Filed

Issue:

To resolve:

NOTE: Webfile is not available for the Tiered Partnership Report as a stand-alone filing.

Form 05-175, Tiered Partnership Report, Filed Without a Tax Report

Issue:

  • The tiered partnership report was filed without a tax report and could not be processed to the account.

To resolve:

  • File the applicable report: long form or, if qualified, EZ Computation, along with the tiered partnership report - see Filing Methods.
Form 05-175, Invalid Data on Texas Franchise Tax Tiered Partnership Report

Issue:

  • The tiered partnership report that was filed cannot be processed because the entity did not include the lower tier total revenue before passing revenue to the upper tier entity or because the entity reported passing revenue in an amount greater than the lower tier entity's revenue.

To resolve:

NOTE: Webfile is not available for the Tiered Partnership Report as a stand-alone filing.

Form 05-102, Completed, Signed Public Information Report, Not Filed or Form 05-167, Completed, Signed Ownership Information Report, Not Filed

Issue:

To resolve:

  • File the correct information report signed by an officer, director, partner, member or other person authorized by the entity. Electronic filing of this report satisfies the signature requirements - see Filing Methods.
Missing Combined Group Common Owner

Issue:

  • A combined group franchise tax report was filed but we did not receive your common owner information. The reporting entity of a combined group with a temporary credit for business loss carryforward preserved for itself or one of its affiliates must file the common owner information by the franchise tax report due date. The common owner is the individual or entity that owns more than 50 percent (directly or indirectly) of each member of the combined group. Note that the common owner is not necessarily the same as the reporting entity.

To resolve:

Form 05-178, Research and Development Activities Credits Schedule, Not Filed

Issue:

To resolve:

NOTE: Webfile is not available for the Research and Development Activities Credits Schedule as a stand-alone filing.

Form 05-180, Historic Structure Credit Supplement for Credit Claimed on Report, Not Filed

Issue:

To resolve:

NOTE: Webfile is not available for the Historic Structure Credit Supplement as a stand-alone filing.

Other Issues

If your entity filed a franchise tax report and still received a delinquent notice, all the reports or schedules necessary to satisfy franchise tax requirements may not have been filed. If you filed the report or schedule we show as missing, call us at 800-252-7942 so we can resolve the issue.

If you think your entity qualifies for exemption from the franchise tax, detailed information about categories of exemption, and the forms to apply for exemption, are available online.

If the entity no longer exists or is no longer subject to the tax and is registered with the Texas Secretary of State (SOS), one of the following applies:

  • If the entity is a Texas entity formed with the SOS, you must legally terminate with the SOS; or
  • If the entity is a non-Texas entity that has an active registration with the SOS, you may withdraw the Texas registration; or
  • If the entity no longer exists in its home state, you must legally terminate the registration with the SOS.

Detailed information about terminating and withdrawing is available online.

Entities not registered with the Texas Secretary of State should notify the Comptroller's office in writing. Provide the reason and the date the entity is no longer subject to the tax to the address below:

Texas Comptroller of Public Accounts
P.O. Box 149348
Austin, TX 78714-9348

Filing Methods

  • Webfile
    Entities can use Webfile to resolve account issues unless sections above indicate otherwise.
  • Comptroller Report Forms
    On the Forms page, make sure you download the appropriate form(s) for the period for which you are filing.
  • Tax Preparation Software
    You must have the most current version of the software from an approved vendor.
Combined Reporting Information

If your entity is a member of a combined group that did not satisfy franchise tax filing requirements, your entity is delinquent for that reason. You do not need to contact our office or file anything with us. Contact the entity that reports your company's information on the combined franchise tax report to resolve this issue. The notice for non-filing will be resolved automatically when the reporting entity files the missing reports with affiliate forms.

Beginning in 2024, if a combined group’s annualized total revenue is at or below the no tax due threshold, the combined group is no longer required to file a No Tax Due Report, an Affiliate Schedule, or a Common Owner Information Report for that report year. However, each individual member of the combined group that is organized in Texas or has nexus in Texas must file a Public Information Report or Ownership Information Report.