34 Tex. Admin. Code § 3.9 - Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers
(a) Voluntary
electronic filing of returns and reports. The comptroller may authorize a
taxpayer to file any report or return required to be filed with the comptroller
under Tax Code, Title 2 (State Taxation), by means of electronic transmission
under the following circumstances:
(1) the
taxpayer or its authorized agent has registered with the comptroller to use an
approved reporting method, such as WebFile, or the taxpayer is filing a return
or report other than a return showing a tax liability; and
(2) the method of electronic transmission of
each return or report complies with any requirements established by the
comptroller and is compatible with the comptroller's equipment and
facilities.
(b) Required
electronic transfer of certain payments by certain taxpayers pursuant to Tax
Code, §
111.0625 (Electronic
Transfer of Certain Payments).
(1) This
paragraph is effective with the state fiscal year beginning September 1, 2018,
for payments due on or after January 1, 2019. This paragraph applies to a
taxpayer who pays the comptroller a total of $500,000 or more in any single
category of payments or taxes during the preceding state fiscal year, and whom
the comptroller reasonably anticipates will pay at least that amount during the
current state fiscal year. The comptroller shall notify the taxpayer of this
electronic funds transfer requirement as provided in subsection (f) of this
section. The taxpayer shall transfer all payments in any category of payments
or taxes that totaled $500,000 or more to the comptroller using the State of
Texas Financial Network (TexNet), pursuant to Chapter 15 of this title
(relating to Electronic Transfer of Certain Payments to State Agencies). This
requirement applies to payments due beginning January 1 of each state fiscal
year in which a taxpayer is notified and continues for one calendar year. For
example, a taxpayer remits $500,000 in any single category of taxes to the
comptroller during the state fiscal year ending August 31, 2019. The
comptroller reasonably anticipates that the taxpayer will pay at least $500,000
in the same category of payments or taxes for fiscal year ending August 31,
2020. The comptroller notifies the taxpayer of the electronic payment
requirement by October 31, 2019. The taxpayer must begin transferring payments
to the comptroller using TexNet beginning on January 1, 2020. The taxpayer's
electronic payment requirement continues until December 31, 2020.
(2) Taxpayers who paid the comptroller a
total of $100,000 or more in any single category of payments or taxes and were
notified by the comptroller of a TexNet payment requirement must continue to
make those payments using TexNet for original or amended reports filed for the
calendar year for which the taxpayer was notified.
(3) Beginning January 1, 2019, taxpayers who
paid $100,000 or more, but less than $500,000, in any single category of
payments or taxes during the preceding state fiscal year, and whom the
comptroller reasonably anticipates will pay at least that amount during the
current state fiscal year, shall transfer all payments in that category of
payments or taxes during the calendar year beginning January 1 of the current
state fiscal year to the comptroller by means of electronic funds transfer as
set out in paragraph (4)(C) of this subsection. The comptroller shall notify
the taxpayer of this electronic funds transfer requirement as provided in
subsection (f) of this section. This requirement applies to payments due
beginning January 1 of each state fiscal year for which a taxpayer is notified
and continues for one calendar year. For example, a taxpayer remits $100,000 in
any single category of taxes to the comptroller during the state fiscal year
ending August 31, 2019. The comptroller reasonably anticipates that the
taxpayer will pay at least $100,000 in the same category of payments or taxes
for fiscal year ending August 31, 2020. The comptroller notifies the taxpayer
of the electronic payment requirement by October 31, 2019. The taxpayer must
begin transferring payments to the comptroller using one of the methods
described in paragraph (4)(C) of this subsection beginning on January 1, 2020.
The taxpayer's electronic payment requirement continues until December 31,
2020.
(4) Taxpayers who paid at
least $10,000, but less than $100,000, in a single category of payments or
taxes as listed in subparagraph (A) of this paragraph during the preceding
state fiscal year, and whom the comptroller reasonably anticipates will pay at
least that amount during the current state fiscal year, shall transfer all
payments in that category of payments or taxes during the calendar year
beginning January 1 of the current state fiscal year to the comptroller by
means of electronic funds transfer as set out in subparagraph (C) of this
paragraph.
(A) This paragraph applies only to:
(i) state and local sales and use
taxes;
(ii) direct payment sales
tax;
(iii) gas severance
tax;
(iv) oil severance
tax;
(v) franchise tax;
(vi) gasoline tax;
(vii) diesel fuel tax;
(viii) hotel occupancy tax;
(ix) insurance premium taxes;
(x) mixed beverage gross receipts
tax;
(xi) mixed beverage sales tax;
and
(xii) motor vehicle rental
tax.
(B) The comptroller
may add or remove a category of payments or taxes to or from this paragraph if
the comptroller determines that such action is necessary to protect the
interests of the state or of taxpayers.
(C) Payments under this paragraph shall be
made by those electronic funds transfer methods approved by the comptroller,
which include, but are not limited to, TexNet, electronic check (WebEFT), and
the electronic transmission of credit card information. The comptroller may
require payments in specific categories to be made by specific methods of
electronic funds transfer.
(D) A
taxpayer required under this paragraph to use electronic funds transfer who
cannot comply due to hardship, impracticality, or other valid reason may submit
a written request to the comptroller for a waiver of the requirement.
(c) Payment date for
electronic transfer of funds.
(1) Pursuant to
§
15.33 of this title (relating to
Determination of Settlement Date), a person who enters payment information into
TexNet may choose either to accept the settlement date that TexNet offers or
enter a settlement date up to 30 days from the business day after payment is
submitted. TexNet will offer the business day following the day on which
payment information is entered into TexNet, provided that the information is
entered by 6:00 p.m. central time on any business day.
(2) A taxpayer who files tax returns and
makes payments through the electronic data interchange (EDI) system must submit
the payment information to the comptroller by 2:30 p.m. central time.
(3) A taxpayer who makes payment by an
electronic funds transfer method approved by the comptroller other than TexNet
or the EDI system must transmit payment information by 11:59 p.m. central time
on the date payment is due.
(d) The administrative rules found in Chapter
15 of this title on electronic funds transfer under Government Code, §
404.095 (Electronic
Transfer of Certain Payments) using TexNet apply to all such payments to the
comptroller.
(e) Required
electronic filing of certain reports by certain taxpayers.
(1) Reports required by Tax Code, §
111.0626 (Electronic Filing
of Certain Reports).
(A) Pursuant to Tax
Code, §
111.0626(a)(1),
taxpayers who are required to use electronic funds transfer for payments of
certain taxes must also file report data electronically, including reports
required by the International Fuel Tax Agreement. This requirement applies to:
(i) state and local sales and use
taxes;
(ii) direct payment sales
tax;
(iii) gas severance
tax;
(iv) oil severance tax;
and
(v) motor fuel
tax.
(B) Pursuant to Tax
Code, §
111.0626(a)(2),
taxpayers who owe no tax and are required to file an information report under
Tax Code, §
171.204 (Information Report)
must file the information report electronically.
(C) Pursuant to Tax Code, §
111.0626(b-1),
taxpayers who paid $50,000 or more during the preceding fiscal year must file
report data electronically. A taxpayer filing a report electronically may use
an application provided by the comptroller, software provided by the
comptroller, or commercially available software that satisfies requirements
prescribed by the comptroller. This subparagraph only applies after issuance to
the taxpayer of the 60 days notice required by subsection (f) of this
section.
(2) Reports by
brewers, manufacturers, brewpubs, wholesalers, and distributors of alcoholic
beverages required by Tax Code, Chapter 151, Subchapter I-1 (Reports by Persons
Involved in the Manufacture and Distribution of Alcoholic Beverages).
(A) For purposes of this paragraph, a
"seller" means a person who is a brewer with a brewer's self-distribution
permit, manufacturer with a manufacturer's self-distribution license, brewpub,
wholesaler, winery, distributor, or package store local distributor, as
described in Tax Code, §§
151.461(1) - (4) and
(6) (Definitions), 151.465 (Applicability to
Certain Brewers), and 151.466 (Applicability to Certain Manufacturers); and a
"retailer" means a person who holds one or more of the permits listed in Tax
Code, §
151.461(5).
(B) On or before the 25th day of each month,
each seller holding a comptroller-issued tax identification number must file a
report of alcoholic beverage sales to retailers in this state. The report must
be filed by a means of electronic transmission approved by the comptroller. The
report must contain the following information:
(i) each Texas Alcoholic Beverage Commission
(TABC) permit or license associated with the seller's comptroller-issued tax
identification number;
(ii) the
TABC permit or license number for each seller location from which a sale was
made to a retailer during the preceding calendar month;
(iii) the TABC permit or license number,
comptroller-issued tax identification number, and TABC trade name and physical
address (street name and number, city, state, and zip code) of each retail
location to which the seller sold alcoholic beverages during the preceding
calendar month;
(iv) the
information required by Tax Code, §
151.462(b)
(Reports by Brewers, Manufacturers, Brewpubs, Wholesalers and Distributors)
regarding the seller's monthly sales to each retailer holding a separate TABC
permit or license, including:
(I) the
individual container size of each product, such as the individual bottle or can
container size, sold to retailers;
(II) the brand name of the alcoholic beverage
sold;
(III) the beverage class code
for distilled spirits, wine, beer, or malt beverage;
(IV) the Universal Product Code (UPC) of the
alcoholic beverage sold;
(V) the
number of individual containers of alcoholic beverages sold for each brand,
UPC, and container size. Multi-unit packages, such as cases, must be broken
down into the number of individual bottles or cans;
(VI) the total selling price of the
containers sold; and
(v)
any other information deemed necessary by the comptroller for the efficient
administration of this subsection.
(C) A brewpub license holder not performing
activities described under Alcoholic Beverage Code, §
74.08 (Sales
by Brewpub License Holders to Retailers) is not required to file the report
described by subparagraph (B) of this paragraph.
(D) If a person fails to file a report
required by subparagraph (B) of this paragraph, or fails to file a complete
report, the comptroller may:
(i) suspend or
cancel one or more permits issued to the person under Tax Code, §
151.203 (Suspension and
Revocation of Permit);
(ii) impose
a civil penalty under Tax Code, §
151.703(d)
(Failure to Report or Pay Tax);
(iii) impose a criminal penalty under Tax
Code, §
151.709 (Failure to Furnish
Report; Criminal Penalty); and/or
(iv) notify the TABC of the failure and the
TABC may take administrative action against the person for the failure under
the Alcoholic Beverage Code.
(E) In addition to the penalties imposed
under subparagraph (C) of this paragraph, if a person violates Tax Code,
Chapter 151, Subchapter I-1, or this paragraph, the comptroller shall collect
from the seller an additional civil penalty of not less than $25 or more than
$2,000 for each day the violation continues.
(F) The requirements of this paragraph
related to brewpubs apply to sales occurring on or after September 1, 2019. The
requirements of this paragraph related to permittees other than brewpubs, apply
to sales occurring on or after September 1, 2011.
(3) Reports by wholesalers and distributors
of cigarettes. Pursuant to Tax Code, §
154.212 (Reports by
Wholesalers and Distributors of Cigarettes), on or before the 25th day of each
month each wholesaler or distributor of cigarettes shall file a report of sales
to retailers in this state. The report must be filed by a means of electronic
transmission approved by the comptroller and must contain the following
information for the preceding calendar month's sales made to each retailer:
(A) the name of the retailer and the address,
including city and zip code, of the retailer's outlet location to which the
wholesaler or distributor delivered cigarettes;
(B) the comptroller-assigned taxpayer number
of the retailer, if the wholesaler or distributor is in possession of the
number;
(C) the cigarette permit
number of the outlet location to which the wholesaler or distributor delivered
cigarettes;
(D) the monthly net
sales made to the retailer, including the quantity and units of cigarettes in
stamped packages sold to the retailer and the price charged to the retailer;
and
(E) any other information
deemed necessary by the comptroller for the efficient administration of this
subsection.
(4) Reports
by wholesalers and distributors of cigars and tobacco products. Pursuant to Tax
Code, §
155.105 (Reports by
Wholesalers and Distributors of Cigars and Tobacco Products), on or before the
25th day of each month each wholesaler or distributor of cigars or tobacco
products shall file a report of sales to retailers in this state. The report
must be filed by a means of electronic transmission approved by the comptroller
and must contain the following information for the preceding calendar month's
sales made to each retailer:
(A) the name of
the retailer and the address, including the city and zip code, of the
retailer's outlet location to which the wholesaler or distributor delivered
cigars or tobacco products;
(B) the
comptroller-assigned taxpayer number of the retailer, if the wholesaler or
distributor is in possession of the number;
(C) the tobacco permit number of the outlet
location to which the wholesaler or distributor delivered cigars or tobacco
products;
(D) the monthly net sales
made to the retailer, including the quantity and units of cigars and tobacco
products sold to the retailer and the price charged to the retailer;
(E) the net weight as listed by the
manufacturer for each unit of tobacco products other than cigars; and
(F) any other information deemed necessary by
the comptroller for the efficient administration of this
subsection.
(5) Reports
by manufacturers and distributors of certain off-highway vehicles purchased
outside this state. Pursuant to Tax Code, Chapter 151, Subchapter I-2 (Reports
by Manufacturers and Distributors of Certain Off-highway Vehicles Purchased
Outside This State) manufacturers and distributors must file a report on or
before March 1 of each year, listing each warranty issued by the manufacturer
for each new off-highway vehicle that was, during the preceding calendar year,
sold to a resident of this state by a retailer located outside this state. This
paragraph is effective September 1, 2019 for manufacturers and September 1,
2021 for distributors.
(A) For the purposes of
this paragraph:
(i) Manufacturer means a
person that manufactures off-highway vehicles and is required to hold a
manufacturer's license under Occupations Code, Chapter 2301.
(ii) Distributor means a person that
distributes off-highway vehicles and is required to hold a distributor's
license under Occupations Code, Chapter 2301.
(iii) New off-highway vehicle means an
off-highway vehicle that has not been the subject of a retail sale.
(iv) Off-highway vehicle includes:
(I) All-terrain vehicle--A vehicle that is
equipped with a seat or seats for the use of the rider and one or more
passengers, designed to propel itself with three or more tires in contact with
the ground, designed by the manufacturer for off-highway use, not designed by
the manufacturer primarily for farming or lawn care, and not more than 50
inches in width;
(II) Off-highway
motorcycle--A vehicle, other than a tractor or moped, that is equipped with a
rider's saddle, designed to propel itself with not more than three tires on the
ground, and designed by the manufacturer for off-highway use only;
(III) Recreational off-highway vehicle--A
vehicle that is equipped with a seat or seats for the use of the rider and one
or more passengers, designed to propel itself with four or more tires in
contact with the ground, designed by the manufacturer for off-highway use, and
not designed by the manufacturer primarily for farming or lawn care;
(IV) Sand rail--A vehicle that is designed or
built primarily for off-highway use in sandy terrains, including for use on
sand dunes; has a tubular frame, an integrated roll cage, and an engine that is
rear-mounted or placed midway between the front and rear axles of the vehicle;
and has a gross vehicle weight of not less than 700 pounds and not more than
2,000 pounds; or
(V) Utility
vehicle--A vehicle that is equipped with side-by side seating for the use of
the operator and one or more passengers, designed to propel itself with at
least four tires in contact with the ground, designed by the manufacturer for
off-highway use, and designed by the manufacturer primarily for utility work
and not for recreational purposes.
(B) The report must be filed by a means of
electronic transmission approved by the comptroller and contain the following
information for each new off-highway vehicle:
(i) the vehicle identification
number;
(ii) the make, model, and
model year of the vehicle;
(iii)
the total sales price, or, if the total sales price is not available, the
manufacturer suggested retail price; and
(iv) the name and address, including street
name and number, city, and zip code, of the purchaser of the vehicle.
(C) A manufacturer or distributor
must file a report, even if they have no warranty information to
report.
(D) If a manufacturer or
distributor fails to file a report or files an incomplete report, the
comptroller:
(i) may impose a civil penalty
of $50 under Tax Code, §
151.703(d)
for each report not filed or for each incomplete report;
(ii) shall impose a civil penalty of not less
than $25 or more than $2,000 for each day the violation continues under Tax
Code, §
151.485 (Civil Penalty);
and
(iii) may notify the Texas
Department of Motor Vehicles (TxDMV) of the failure. The TxDMV may take
administrative action against the manufacturer or distributor for the failure
under Occupations Code, Chapter 2301.
(6) Except as provided by Tax Code, §
111.006 (Confidentiality of
Information), information contained in the reports required by paragraphs (2),
(3), (4), and (5) of this subsection is confidential and not subject to
disclosure under Government Code, Chapter 552 (Public Information).
(7) The reports required by paragraphs (2),
(3), (4), and (5) of this subsection are required in addition to any other
reports required by the comptroller.
(8) The reports required by paragraphs (2),
(3), and (4) of this subsection must be filed each month even if no sales were
made to retailers during the preceding month.
(f) Notification of affected persons. The
comptroller shall notify taxpayers who are affected by subsection (b) or (e)(1)
of this section no less than 60 days before the first required electronic
transmittal of report data or payment.
(g) A taxpayer who is required to file report
data electronically under subsection (e)(1) of this section may submit a
written request to the comptroller for a waiver of the requirement. A taxpayer
who is required to electronically file a report under subsection (e)(3) or (4)
of this section may submit a written request to the comptroller for a waiver of
the requirement and authorization of an alternative filing method.
(h) Pursuant to Tax Code, §
111.063 (Penalty for Failure
to Use Electronic Transfers and Filings), the comptroller may impose separate
penalties of 5.0% of the tax due for failure to pay the tax due by electronic
funds transfer, as required by this section, or for failure to file a report
electronically, as required by Tax Code, §
111.0626.
(i) Protest payments by electronic funds
transfer. Protested tax payments made under Tax Code, §
112.051 (Protest Payment
Required), must be accompanied by a written statement that fully and in detail
sets out each reason for recovery of the payment. Protested tax payments are
not required to be submitted by electronic funds transfer.
(1) A person who is otherwise required to pay
taxes by means of electronic funds transfer may make protested payments by
other means, including cash, check, or money order. A written statement of
protest that fully and in detail sets out each reason for recovery of the
payment must accompany the non-electronic payment.
(2) A person may submit a protested tax
payment by means of electronic funds transfer if the written statement is
submitted in compliance with the requirements set out in subparagraph (A) of
this paragraph.
(A) A person may submit a
protest payment by means of electronic funds transfer only if:
(i) a written statement of protest is
delivered by facsimile transmission or hand-delivery at one of the
comptroller's offices in Austin, Texas;
(ii) the written statement of protest is
delivered to the comptroller within 24 hours before or after the electronic
transfer of the payment;
(iii) the
written statement of protest identifies the date of electronic payment, the
taxpayer number under which the electronic payment was or will be submitted,
and the amount paid under protest; and
(iv) the electronic payment is specifically
identified as a protest payment by the method, if any (such as a special
transaction code or accompanying electronic message), that the comptroller may
designate as appropriate to the method by which the person transferred the
funds electronically.
(B)
The failure of a taxpayer to submit a written statement in compliance with
subparagraph (A) of this paragraph means the tax payment that the taxpayer made
is not considered to be a protest tax payment as provided by Tax Code, §
112.051.
(C) If a person submits multiple written
statements of protest that relate to the same electronic payment, then only the
first statement that the comptroller actually receives is considered the
written protest for purposes of Tax Code, §
112.051.
Notes
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