34 Tex. Admin. Code § 3.592 - Margin: Additional Tax

(a) Effective date. For reports originally due on or after January 1, 2008, the additional tax imposed by Tax Code, § 171.0011, applies to a taxable entity which no longer has sufficient nexus with Texas to be subject to the franchise tax. All provisions of Tax Code, Chapter 171, apply to the additional tax, unless they conflict with a provision in Tax Code, § 171.0011.

(b) Due date. A final report and payment of the additional tax are due within 60 days after the taxable entity no longer has sufficient nexus with Texas to be subject to the franchise tax. However, an estimated return and payment may need to be filed and paid before a taxable entity will receive clearance from the comptroller to terminate, dissolve, merge, or withdraw. As long as the proper amount is paid and an amended return, if needed, is filed within 60 days after the taxable entity terminates, dissolves, merges, or withdraws, then no penalty or interest will be assessed.

(c) Rate and business based on. The additional tax rate is determined by Tax Code, § 171.002 and is applied to taxable margin for the period from the day after the last day for which tax under Tax Code, Chapter 171, was based on a previous report through the date the taxable entity no longer has sufficient nexus with Texas to be subject to the franchise tax.

(d) Passive entities. See § 3.582(g) of this title (relating to Margin: Passive Entities) and Tax Code, § 171.001(c). A passive entity must file a final report when the entity is no longer subject to the tax. If the entity has been a passive entity since the last report filed, no tax would be due with the report.

(e) Combined group reports. See § 3.590 of this title (relating to Margin: Combined Reporting).

Notes

34 Tex. Admin. Code § 3.592

The provisions of this §3.592 adopted to be effective January 1, 2008, 32 TexReg 10048; amended to be effective January 1, 2009, 33 TexReg 10505