Bookkeeper QuickBooks ProAdvisorFor Texas owners.

The practice is in Dallas. The owner does not have to be. A shop in the Hill Country, along the Gulf, up in the Panhandle, or outside Dallas and Fort Worth sends the same thing we ask of anyone else: one statement and the register for the month that does not match. The call is a video call.

The capitol in Austin is the picture on this page because the franchise report and the sales-tax account are state papers, and the month that feeds them is still closed here. National pages on this site do not name a Texas town. This page does, because the reader asked for the Texas version of the close.

Publication 98-806 is where the Comptroller lists an S corporation among the entities whose franchise report has to exist, a company with only one shareholder stays on that list while its statement sits unmatched, and a person who never formed a company and only moves money inside a personal account is generally outside the report, so May stays beside the open month once the company exists even if wages were the only cash that left the register.

Form 05-102 is the report a Texas corporation, or a corporation with Texas nexus, files, and the public information report goes with it under the signature of an officer, a director, or another person the company has authorized. Other taxable entities put ownership on Form 05-167, so the S corporation remains on 05-102 while the bookkeeper is still clearing the month. The information report shares that due date, including a year with no tax, unless the Comptroller skip list already covers the company. Missing the short report can take away the right to sue or defend in a Texas court, which is the forfeiture Tax Code sections 171.251, 171.2515, 171.252, and 171.255 are describing, and a registered-agent change is a Secretary of State filing that 05-102 will not perform.

The ordinary franchise date is May 15, sliding to the next business day when that date is a weekend or a holiday, and the unmatched statement is not given the same slide. On a 2026 or 2027 report, revenue at or under two million six hundred fifty thousand dollars means the franchise tax is not owed while the form is still filed unless the skip list applies, and the 2024 and 2025 rows stay on the Comptroller pages for those years instead of being copied into this close. In 2026 and 2027 a retailer or wholesaler is at 0.375 percent, any other trade is at 0.75 percent, and compensation on the report stops at four hundred eighty thousand dollars a person, so a later year is checked on the franchise home page before a rate saved in the workpapers is reused.

On the long form, Publication 98-806 allows one path only: keep seventy percent of total revenue, or remove the cost of goods, or remove compensation, or remove one million dollars, and the open month has to be matched before any of those four is chosen. Federal revenue is where that report begins, Tax Code section 171.1011 names the amounts taken back off before margin is computed, and a service company with nothing to count as goods often finds the cost path empty aside from the industry exceptions in section 171.1012. Compensation in that math uses the wage statements, keeps 1099 labor out, keeps out the payroll taxes the company itself paid, and can include health coverage already on the wage line for an owner over two percent, up to the per person cap, while other cash the owner took is not pulled into compensation just because the software labeled a draw.

EZ is the shorter math when annualized total revenue is twenty million dollars or under, it uses 0.331 percent, and choosing it gives up the margin deductions, so a company that needs a deduction stays on the long form once it is past the no-tax-due line. Texas does not lay a personal income tax on the wage, the federal return still names that wage, and the franchise report does not rename the wage the close already recorded.

Extra time on the May franchise report is a payment or a Comptroller form that arrives by the original due date, and it does not zero the difference on the statement. That payment is generally aimed at the whole prior-year franchise tax or at nine tenths of the tax the current report will show, while a company in its first annual report, having only become subject in the prior year, cannot aim the payment at the whole prior year. A company the state has not moved onto electronic funds transfer asks through Webfile or Form 05-164, and that route runs to November 15 with the register still required to match. The extra dates follow what the company already paid the state, so ten thousand dollars or more in the previous state fiscal year moves that payment onto electronic transfer with August 15 as the first added date and November 15 as the second, and five hundred thousand dollars or more drops Form 05-164 until the only request left is a TEXNET payment under code 13080, while the unmatched register is still closed here and the hour on the extensions page is read the morning that payment goes out.

A missed information report adds a fifty dollar charge of its own, separate from whether the bank difference was zero. Franchise tax that arrives in the first 30 days after the due date costs an extra 5 percent, tax that arrives after that costs an extra 10 percent, and interest on the unpaid tax begins on day 61 with the percent left on the Comptroller interest page instead of being copied into the workpapers, while the filing requirements page and the information report page are where those clocks are written for a month whose difference is still not zero.

When the company is ending its Texas nexus, a 60 day clock starts for the final report, and another 45 days can apply once the payment rules for that ending are met. The last open month is still closed by the same test. The difference is still zero before that final report is treated as finished.

Goods the company sells can open a Comptroller sales account that is not the franchise report, and which of those sales are taxable, including any city add-on, is not ruled here. The sales tax home page is where that ruling lives, and a service the company performs is not labeled taxable or exempt on this page either. Before that return is prepared, the close still has to pull a taxable deposit out of transfers, owner movements, and refunds, or the sales return is a guess sitting on an unmatched statement.

A Comptroller letter about the franchise report or the sales account can arrive with the statement, and the useful pair is that letter plus the month that does not yet match. The letter can be lined up with months whose difference is already zero. A dispute that belongs with a lawyer stays with the lawyer, while the register keeps wages, other cash, and the difference that is not yet zero.

An audit, a review, or a compilation is a signature this close does not make, and the months that already match can still be handed to a firm that does sign. Before any letter is drafted, the video call says that limit in plain words.

What we ask you to send is the statement that still disagrees with the register, with the figures left off the website form. The practice sits in Dallas, and the video call does not need the name of the Texas town that printed the statement.