Defense Against Texas Franchise Tax Audits

In Texas, businesses with $1.18 million or more in annual receipts are required to pay the state franchise tax. The no-tax-due threshold of $1.18 million applies to years 2020 and 2021, and the threshold may change in the coming years. Small businesses with receipts below that threshold are not required to pay a franchise tax.

The state franchise tax is calculated based on a company’s margin, and that calculation can be done in multiple ways. If you are facing a Texas franchise tax audit, do not try to navigate the process on your own. Contact an experienced and dedicated taxpayer advocate. Call Attorney Ronald Arthur Stearns Sr. in Austin or San Antonio at 512-257-0570 or 512-593-7346.

Know Your Rights. Understand Your Options.

Generally, certain types of entities formed or doing business in Texas are subject to the franchise tax if the company’s receipts exceed the no-tax-due threshold. Those types of entities include but are not limited to:

  • Corporations
  • LLCs
  • Partnerships
  • S-Corporations
  • Joint ventures
  • Professional corporations
  • Business associations
  • Professional associations
  • Banks
  • Savings and loan associations

However, there are other types of entities — sole proprietorships and certain types of partnerships, for example — that are excluded from the franchise tax. Before responding to a courtesy or statutory notice from the Texas Comptroller, contact Attorney Ronald Arthur Stearns Sr., a dedicated taxpayer advocate.

Innocent errors are not uncommon in Franchise Tax Reports. Attorney Stearns can assess your situation and help you find a solution. In any case, you do not have to navigate these matters alone.

Learn more about Tax Collection Defense and Tax Collection Alternatives.

Contact Attorney Ronald Arthur Stearns Sr.

To speak with Attorney Stearns, call 512-257-0570 or 512-593-7346 in Austin or San Antonio. You can also email Attorney Stearns to arrange a consultation.