Answers to Your Questions
- View our up-to-the-minute list of Franchise Tax Frequently Asked Questions (FAQs)
Tips for Combined Groups Requesting an Extension
A combined group requesting an extension must file both of the following forms with the appropriate payment on or before the due date:
- Extension Request (Form 05-164)
- Extension Affiliate List (Form 05-165)
The affiliate list tells us which entities will be reported as a part of the combined group, so we will not expect a separate report from those affiliates. Filing the extension request without the affiliate list, or the list without the extension request, will not establish an extension for the group.
However, a combined group paying electronically using TEXNET will make an extension payment using tax payment code 13080. In this case, do not submit the Extension Request (Form 05-164), but do submit by mail the Extension Affiliate List (Form 05-165.) Combined groups requesting a second extension should not submit a second Affiliate List (Form 05-165.)
A combined group is required to electronically transmit payments if any member of the group is required to make payment electronically.
A combined group may only use the 100 percent extension payment option if the combined group has lost a member, or if the members of the combined group are the same as they were on the last day of the period upon which the report due in the previous calendar year was based.
If a combined group includes an entity that was not required to file a franchise tax report in the prior year, the 100 percent option is not available.
If any member of a combined group is required to pay by Electronic Funds Transfer (EFT), the group is required to pay by EFT.
A separate entity that was included in a combined group report in the prior year may not use the 100 percent extension option.
Tips for Completing the Affiliate List
The affiliate list requires you to report three pieces of information for each affiliate:
- the affiliate's legal name
- the affiliate's Texas taxpayer number, and
- whether or not the affiliate has nexus in Texas.
If the affiliate has an 11-digit Texas taxpayer number issued by the Comptroller, use this number. Do not truncate or shorten this number — enter all 11 digits.
If the affiliate does not have a Texas taxpayer number issued by the Comptroller, enter the entity's 9-digit Federal Employee Identification Number (FEIN).
To avoid processing errors and delays, do not use the entity's file number registered with the Texas Secretary of State or the reporting entity's taxpayer number. If the affiliate does not have a Texas taxpayer number or an FEIN, leave the field blank.
The nexus field is worded as “Blacken circle if affiliate does not have nexus in Texas.” Blacken the circle for the affiliates that do not have nexus in Texas.
Use Comptroller forms to request an extension and submit the affiliate list. We will not accept this data in Excel spreadsheets or other formats.
Send us the affiliate list only one time with the original extension request. Please do not submit the affiliate list:
- with a second extension request, or
- when you file the report and affiliate schedule.
When Filing the Franchise Tax Report
Before filing the report and the affiliate schedule for the Aug. 15 or Nov. 15 extended due date, please review the affiliate list submitted with the extension request. The reporting entity must be included on the Affiliate Schedule. If an entity was included on the affiliate list but not on the affiliate schedule, the combined group will not be in good standing. If an entity was included on the affiliate list in error, notify the Comptroller in writing explaining the error and telling us how the entity will report — separately, or as a part of another combined group.