This article has been saved to your Favorites!

Texas Extends Franchise Tax Deadline Amid Pandemic

By Jaqueline McCool · April 2, 2020, 7:06 PM EDT

Texas has extended the deadline for filing 2020 franchise tax reports to July 15 in response to the COVID-19 pandemic, the state comptroller, Glenn Hegar, said in a news release Thursday.

The news release said the deadline for franchise tax reports would be automatically extended from April 15 to July 15 to mirror the federal income tax filing extension. That was announced March 20 in response to the global outbreak of the novel coronavirus, which causes COVID-19, a respiratory disease.

The release said taxpayers can request an additional extension to Aug. 15 anytime before or on or before the new July due date. 

Electronic fund transfer taxpayers requesting an additional extension must pay 90% of the tax due for the current year or 100% of the tax reported for the prior year with the extension request, the comptroller said. A second filing extension may be requested, but the remainder of any tax due must be submitted with the extension request. Any payments made after Aug. 15 are subject to interest and penalties.

Non-electronic fund transfer taxpayers that can't file by July 15 may file an extension request on or before that date and must pay 90% of the tax that will be due for the current year or 100% of the tax reported for the prior year with the request, the comptroller said.

Non-EFT taxpayers will have until Jan. 15, 2021, to file their reports and pay the remaining tax owed.  Interest and penalties will apply to any of the 90% of tax not paid by July 15 and to any remaining tax not paid by Jan. 15, 2021.

--Editing by John Oudens.  


For a reprint of this article, please contact reprints@law360.com.

View comments