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Franchise Tax Extensions of Time to File

An extension of time to file a franchise tax report will be tentatively granted upon receipt of a timely request on a form provided by the Comptroller. Timely means the request is received or postmarked on or before the due date of the original report.

Combined Reports

See the special extension rules and other tips for entities required to file a combined report.

Due Dates

If a due date or extended due date falls on a Saturday, Sunday or legal holiday, the next working day becomes the due date.

Filing Type Requirements

Annual Reports for entities not required to pay franchise tax by Electronic Funds Transfer (EFT)

Request the extension using franchise tax WebFile or by filing an Extension Request, Form 05-164, along with the appropriate payment, on or before the original due date of the report.

The extension payment must be at least 90 percent of the tax that will be due with the report, or 100 percent of the tax reported as due on the prior franchise tax report (provided the prior report was filed on or before May 14 of the year for which the extension is requested).

A taxable entity that became subject to the franchise tax during the previous year may not use the 100 percent payment option to file its first annual report. Also, a separate entity that was included in a combined group report in the prior year may not use the 100 percent extension option.

If the extension request does not meet the payment requirements when the report is filed, penalty and interest will apply to any part of the 90 percent of the tax not paid by the original due date and to any part of the 10 percent of the tax not paid by the extended due date.

If granted, the extended due date is Nov. 15.

Entities required to pay franchise tax by EFT – FIRST Extension

Entities that paid $10,000 or more in franchise taxes in the previous state fiscal year are required to pay using EFT.

Entities that paid $10,000 to $99,999.99 can meet the EFT extension payment requirement by using franchise tax WebFile to make their payment on or before the due date.

Entities that paid $100,000 or more in franchise taxes in the previous state fiscal year are required to pay using TEXNET. These entities will request the extension by making a timely TEXNET payment using tax type payment code 13080 (Franchise Tax Extension). The report year is the year the payment is due. See 96-590, TEXNET Payment Instructions Booklet (PDF, 984k) for additional information.

Do not submit Extension Request, Form 05-164.

Entities Required to Pay Franchise Tax by EFT – SECOND Extension

Request a second extension by making a timely TEXNET payment, using tax type code 13080 (Franchise Tax Extension), or use franchise tax WebFile to make the second extension payment on or before Aug. 15.

The payment should equal the balance of the amount of tax that will be reported as due on Nov. 15. If all of the tax due was paid with the entity's first extension, use franchise tax WebFile or submit the Extension Request, Form 05-164 (PDF, 80KB), to request a second extension.

Final Reports

Request an extension for a final report by filing the Extension Request, Form 05-164 (PDF, 80KB), along with the appropriate payment, postmarked on or before the original due date of the report.

An entity required to pay franchise tax by EFT should request a final extension through TEXNET, using tax payment code 13080, on or before the due date of the final report. The extension payment must be at least 90 percent of the tax that will be due with the report.

If the extension request does not meet the payment requirements when the report is filed, penalty and interest will apply to any part of the 90 percent of the tax not paid by the original due date and to any part of the 10 percent of the tax not paid by the extended due date.

If granted, the extended due date is 45 days after the original due date of the final report.

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