34 Tex. Admin. Code § 1.13 - Taxpayer's Acceptance or Rejection of Position Letter, and Reply to Position Letter

(a) Due date to accept or reject the Position Letter; extensions. The taxpayer must accept or reject the Position Letter, in whole or in part, within 45 days after the day the Position Letter is dated. The taxpayer may request an extension of this deadline from the assigned Tax Hearings Attorney. The first request to extend the deadline up to an additional 45 days will be granted by the assigned Tax Hearings Attorney. Additional extensions of the deadline to accept or reject the Position Letter will not be granted unless the taxpayer demonstrates there is good cause for the extension and that the need is not caused by neglect, indifference, or lack of diligence.

(b) Selection form. The taxpayer must sign and return to the assigned Tax Hearings Attorney the selection form provided as an attachment to the Position Letter. The taxpayer must select one of the following options.

(1) Option One: Agree with the Position Letter. If the taxpayer selects this option, the General Counsel of the Hearings and Tax Litigation Section will also sign the form, which will then be considered a resolution agreement under § 1.31 of this title (relating to Resolution Agreements). The tax liability or refund will be calculated consistent with the Position Letter, including any applicable penalty or interest, and a final billing will be sent to the taxpayer. The taxpayer will not be required to respond to the amended determination and final billing, other than by payment, unless the taxpayer disagrees with the amount of the amended determination or final billing.

(2) Option Two: Disagree with the Position Letter. The taxpayer may reject some or all of the conclusions of the Position Letter by selecting this option and may include a Reply to the Position Letter as provided in subsection (c) of this section.

(c) Reply to the Position Letter. At the time the taxpayer submits the selection form described in subsection (b)(2) of this section, the taxpayer may also submit a Reply to the Position Letter. The Reply to the Position Letter should address all unresolved contentions and provide legal and factual support for the taxpayer's position. If the Position Letter does not address specific contentions or contested items that the taxpayer believes should be included as part of the contested case, the Reply to the Position Letter should state those contentions or contested items so that they may be included in the Notice of Hearing for consideration by the ALJ. If the taxpayer has previously provided the facts, legal arguments, information, and documents it intends to submit for consideration at the time the Reply to the Position Letter is due, the taxpayer may return the selection form indicating disagreement with the Position Letter without a Reply to the Position Letter.

(d) If the taxpayer fails to timely respond to the Position Letter, the comptroller may dismiss the contested case. See § 1.32 of this title (relating to Dismissal of Case). In such case, an amended final determination or final billing in accordance with the positions set forth in the Position Letter will be sent to the taxpayer. The contested case will be concluded unless the taxpayer files a motion for rehearing following the procedures stated in § 1.35 of this title (relating to Motion for Rehearing).

Notes

34 Tex. Admin. Code § 1.13

Adopted by Texas Register, Volume 43, Number 50, December 14, 2018, TexReg 8126, eff. 1/1/2019; Amended by Texas Register, Volume 47, Number 22, June 3, 2022, TexReg 3270, eff. 6/8/2022