News & Publications
Upcoming Texas Tax Amnesty
On December 21, 2017, the 36th Texas Comptroller of Public Accounts, Glenn Hegar, announced a Texas Tax Amnesty Program to run from May 1, 2018, through June 29, 2018. The temporary program offers relief to delinquent taxpayers in the form of absolving penalties and interest on tax due for certain taxes.
The amnesty applies only to periods before January 1, 2018, and is only applicable to liabilities not previously identified as due by the Texas Comptroller. Also not included are periods currently under audit by the State of Texas, International Fuel Tax Agreement (IFTA) taxes, Public Utility Commission (PUC) of Texas gross receipts assessments, local motor vehicle taxes, and unclaimed property payments. Included is tax due from purchases.
Such amnesty is a great opportunity for taxpayers to make things right and become compliant with Texas state tax law. The benefit of no penalty or interest can be sizable and is designed to encourage voluntary compliance.
The amnesty program was brought to fruition by the passing of Senate Bill 1 (S.B. No. 1) by the Texas Legislature during 2017. Section 17.11 of the legislation requires the Comptroller of Public Accounts to create a tax amnesty program under the authority of Tax Code Section 111.103 designed to promote elective reporting by delinquent taxpayers who either do not currently have a Texas Sales and Use Tax Permit or are not registered for a tax administered by the Comptroller and taxpayers who do have a permit but may have underreported or may owe additional taxes. Offering amnesty is one method that the legislature hopes will generate revenue for the state not only in current years but also in following years as a result of taxpayers coming clean, registering, and timely reporting and remitting taxes.
The Texas Comptroller of Public Accounts sent an email notification to taxpayers December 21, 2017, regarding the tax amnesty program announcement as a special alert. Very few specifics regarding the program were provided in the notification except to stay tuned for details.
Contributor: Trisha Davidson
Tips for the Taxpayer
It is in the best interest of Texas taxpayers and those who should be considered Texas taxpayers to clearly review their nexus in Texas and determine if any liability may exist. Upon a review of your Texas sales and purchases, you should consider utilizing the Texas Tax Amnesty Program. Stay updated with the latest legislation, details of the program, and future notices. Consult a tax professional for clarity and expertise.
How Can We Help?
Allyn offers tax compliance and consulting services for companies throughout the United States. Allyn has significant experience assisting businesses with reviews of their sales and purchases, nexus, registrations and amnesty programs. As tax laws change and amnesty programs are created, we can use our experience to help your business improve compliance, minimize costs, reduce liabilities and increased profits.
We can help your business maintain compliance with federal and state tax responsibilities and put procedures in place to ensure future streamlining of processes and increased data accuracy for tax purposes.
Allyn’s tax team is experienced in all aspects of Federal, state, and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.
Allyn files state and local sales and use, property, and license tax returns in every US taxing jurisdiction in addition to excise tax filings such as Federal Excise Tax, Heavy Highway Vehicle Use Tax, and International Fuel Tax Agreement returns. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.
Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact tax@allynintl.com.
For More Information
If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News and Events at www.allynintl.com. Additional supporting documents concerning the Texas Tax Amnesty Program can be found at the Texas Comptroller’s tax amnesty website at https://comptroller.Texas.gov/tax-amnesty/, the press release at https://comptroller.Texas.gov/about/media-center/news/2017/171221-tax-amnesty.php, or the legislation at http://www.legis.state.tx.us/tlodocs/85R/billtext/pdf/SB00001F.pdf#navpanes=0.
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