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Franchise Tax Notices:
Reasons We Send Courtesy, Delinquent or Forfeiture Notices


Original Franchise Tax Report Not Filed

If you have not filed an original franchise tax report, or your franchise tax report was disallowed, we estimate the tax liability. Paying the estimate does NOT resolve the delinquency. The entity must file the franchise tax report and the appropriate information report (Public Information Report for corporations, limited liability companies and financial institutions; Ownership Information Report for all other entity types).

You can file your report using:

If your entity is a member of a combined group that did not file the franchise tax report, your entity is delinquent for that reason. You do not need to contact our office or file anything with us. Contact the entity that reports your company's information on their combined franchise tax report to resolve this issue. The delinquency associated with your entity's franchise tax account will be resolved automatically when the reporting entity's delinquency is resolved.

Form 05-158A, Texas Franchise Tax Report - Page 1, Not Filed, or
Form 05-158B, Texas Franchise Tax Report - Page 2, Not Filed

An entity filing the long form report must file both pages 1 and 2 of this report. To resolve this issue, file the missing report.

The franchise tax report forms, including information on which forms the entity should file, are available online.

Electronic filing using WebFile is not available for Franchise Tax Report - Page 1 or Franchise Tax Report - Page 2 as a stand-alone filing.

If you use Tax Preparation Software, be sure you have the most current version of the software from an approved vendor.

Form 05-160, Texas Franchise Tax Credits Summary Schedule, Not Filed

An entity taking a credit on Line 31 of the long form report, page 2 (Form 05-158B) must also file the Credits Summary Schedule, Form 05-160, to support the credit being taken.

Answers to frequently asked questions about credits are available online.

To resolve this issue, file the missing Credits Summary Schedule (PDF, 41KB). See instructions.

Electronic reporting using WebFile is not available for the Credits Summary Schedule as a stand-alone filing.

If you use Tax Preparation Software, be sure you have the most current version of the software from an approved vendor.

A long form or E-Z Computation report is filed as a combined report, but the affiliate schedule is not filed.

Page 1 of the long form report (Form 05-158A), or the E-Z Computation Report (Form 05-169) was filed with the circle blackened that indicates this report is a combined report. The Affiliate Schedule, Form 05-166, must be filed as part of a combined report filing.

Answers to frequently asked questions about combined reports are available online.

To resolve this issue, file the missing Affiliate Schedule (PDF, 42KB). See instructions. If the report is not a combined report and the circle was blackened in error, contact our office.

Electronic filing using WebFile is not available for the Affiliate Schedule as a stand-alone filing.

If you use Tax Preparation Software, be sure you have the most current version of the software from an approved vendor.

Form 05-175, Tiered Partnership Report, Not Filed

Page 1 of the long form report (Form 05-158A), or the E-Z Computation Report (Form 05-169) was filed with the circle blackened that indicates total revenue was adjusted for the tiered partnership election. The Tiered Partnership Report (Form 05-175) must be completed by all entities (upper and lower) involved in a tiered partnership election under Texas Tax Code Section 171.1015.

Answers to frequently asked questions about tiered partnerships are available online.

To resolve this issue, file the missing Tiered Partnership Report (PDF, 38KB). See instructions. If a tiered partnership was not made and the circle was blackened in error, contact our office.

Electronic filing using WebFile is not available for the Tiered Partnership Report as a stand-alone filing.

If you use Tax Preparation Software, be sure you have the most current version of the software from an approved vendor.

Form 05-175, Tiered Partnership Report, Filed Without a Tax Report

The tiered partnership report was filed without a tax report and could not be processed to the account.

Answers to frequently asked questions about tiered partnerships are available online.

To resolve this issue, the entity can file the applicable report: long form or, if qualified, E-Z Computation. However, the no tax due thresholds, discounts and the E-Z Computation do not apply to a lower or an upper tier entity if, before the attribution of any total revenue by a lower tier entity to an upper tier entity, the lower tier entity does not meet the criteria.

You can file your report using one of these methods:

Invalid Data on Texas Franchise Tax Tiered Partnership Report, Form 05-175

The tiered partnership report that was filed cannot be processed because the entity did not include the lower tier total revenue before passing revenue to the upper tier entity or because the entity reported passing revenue in an amount greater than the lower tier entity's revenue.

To resolve this issue, file a corrected Tiered Partnership Report (PDF, 38KB).

Electronic filing using WebFile is not available for the Tiered Partnership Report as a standalone filing.

If you use Tax Preparation Software, be sure you have the most current version of the software from an approved vendor.

Completed, Signed Public Information Report, Form 05-102, Not Filed or
Completed, Signed Ownership Information Report, Form 05-167, Not Filed

  • An information report was not filed;
  • The incorrect information report was filed for your entity type; or
  • The information report was filed without a signature.

Entities legally formed as corporations, limited liability companies (LLCs) and financial institutions must file the Public Information Report (Form 05-102) as part of their franchise tax filing. All other entity types must file the Ownership Information Report (Form 05-167) as part of their franchise tax filing. For example, a professional association is not a corporation and must file the Ownership Information Report even though it files as a corporation for federal income tax purposes.

To resolve these issues, file the correct, information report with signature of an officer, director, partner, member or other person authorized by the entity. Electronic filing of this report satisfies the signature requirements.

You can file the report using one of these methods:

Incomplete Affiliate Data on Affiliate Schedule, Form 05-166

A complete Affiliate Schedule (Form 05-166) must be filed as part of a combined report filing. The reporting entity must be included on the Affiliate Schedule.

To resolve this issue, file a new Affiliate Schedule (PDF, 101KB). If you filed an extension, you will want to compare the Affiliate List (Form 05-165) that you filed with your extension request with the Affiliate Schedule that you filed with your report. The most common errors are:

  • failure to list the reporting entity on the affiliate schedule;
  • failure to report for all the entities that were shown as affiliates on the Affiliate List (Form 05-165) when an extension request was filed; and/or
  • invalid accounting period begin and end dates because the affiliate's dates are not the same as, or within the accounting period of the combined group as shown on page 1 of the franchise tax report.

Electronic filing using WebFile is not available for the Affiliate Schedule as a stand-alone filing.

If you use Tax Preparation Software, be sure you have the most current version of the software from an approved vendor.

Balance Due

The entity filed the franchise tax report but did not pay the entire amount due. The amount due may include tax, penalty, interest, or any combination of the three. The breakdown of the amount of tax, penalty and/or interest due is listed on the delinquent notice.

To resolve this issue, pay the amount due. If you are required to pay electronically, you must use TEXNET to pay the balance due in order to avoid an additional penalty. Otherwise, you may visit one of our local field offices, or mail your payment to P.O. Box 149348, Austin TX 78714-9348.

Missing Combined Group Common Owner

A combined group franchise tax report was filed but we did not receive your common owner information. The reporting entity of a combined group with a temporary credit for business loss carryforward preserved for itself or one of its affiliates must electronically file the common owner information by the franchise tax report due date. The common owner is the individual or entity that owns more than 50 percent (directly or indirectly) of each member of the combined group. Note that the common owner is not necessarily the same as the reporting entity. Electronically file your common owner information online at www.window.texas.gov/commonowner/ to resolve this issue.

Other Issues

If you have recently filed your franchise tax report, you can check the status of your account on our Certificate of Account Status page.

If your entity filed a franchise tax report and still received a delinquent notice, it may be that all the reports or schedules necessary to satisfy franchise tax requirements were not filed. If you filed the report or schedule we show as missing, please call us at (800) 252-7942 so we can resolve the issue.

If you believe your entity would qualify for exemption from the franchise tax, detailed information about categories of exemption, and the forms to apply for exemption, are available online.

If the entity no longer exists or is no longer subject to the tax, the entity must formally end its existence with the Texas Secretary of State, if registered with their office. Detailed information about terminating, cancelling and withdrawing is available online.

Entities not registered with the Texas Secretary of State that are not, or are no longer, subject to the tax should notify the Comptroller's office in writing. Please provide the reason and the date the entity is no longer subject to the tax.

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