When a natural gas tax account has an outstanding balance for a specific report period, generation of an underpayment or overpayment notice occurs. The Comptroller's office has the responsibility of processing taxpayer reports, payments and credit transfers. However, the taxpayer has the burden of checking the validity of any type of underpayment and/or overpayment notices issued. If a notice is invalid, the Comptroller's office must be notified to make the necessary corrections.
It is very important for taxpayers to maintain full knowledge of all outstanding balances. To keep up with the reconciliation process, it is advisable for taxpayers to view their outstanding balances against the report totals on the web whenever notices are received.
The following are the types of notices issued:
- Underpayment Notice -is issued for liabilities under $100 and the form used for this type of liability is the "Texas Statement of Account." This form indicates tax, penalty and interest assessments for a specific report period. The daily interest assessment is also shown, if any.
- Notice of Tax/Fee Due -is issued for liabilities over $100. This notice is also called a "Jeopardy Determination" and is a legal document. The daily interest assessment is also shown, if any.
- Twenty days are allowed to resolve the liability indicated on the Notice of Tax/Fee Due. After twenty days from the issue date of the notice, the Notice of Tax Due becomes final. The "Taxpayer Rights Summary" located at the bottom of the Notice of Tax/Fee Due form presents possible collection actions taken by the Comptroller's office if the liability is not resolved.
- The "Summary of Procedures for Handling Disagreements" located on the back of the Notice of Tax/Fee Due explains two options for handling the disagreement with the liability indicated on this form.
- Once the Notice of Tax/Fee Due is issued, the outstanding liability balance on this notice holds until the liability is reduced to a zero or credit balance. This applies regardless if the report period is within the four-year statute of limitations, or if the report period is past the four-year statute of limitations.
- Overpayment Notice-is issued for any credit amount after a report period has a credit balance. The form used for this type of overpayment is the "Tax Statement of Account."
- Tax Statement of Account-is issued after a Notice of Tax/Fee Due was previously issued. The issuance of this notice occurs when an existing liability balance remains after processing a payment, credit transfer and/or liability amended report. This form will indicate the tax, penalty and interest assessments and the daily interest, if any.
Examples of the notices issued are on the next pages.