Texas Registered Agent

Notice on Using Tax Preparation Software for 2008-2010 Franchise Tax Reports

Legislative changes to the Texas franchise tax have prompted the need for revised franchise tax reporting forms to capture additional information and include new edits and calculations. If you use approved tax preparation software to complete your franchise tax reports, please note these important updates:

• Effective Jan. 1, 2010, the Texas Comptroller of Public Accounts will not be able to accept original franchise tax reports generated from tax preparation software approved for 2008 and 2009 reports.
• Amended 2008 and 2009 reports generated from previously approved tax preparation software products will still be accepted.

What this means: If you are filing an original franchise tax report for 2008, 2009 or 2010, after Dec. 31, 2009, you will need to use tax preparation software approved by the Comptroller's office for the 2010 report year. You should also check with the tax preparation software vendor to determine if the vendor's 2010 software provides the option to submit amended returns for reports originally submitted using 2008 and/or 2009 software.

The Comptroller's revised forms for the 2010 reporting year will be available on our agency's Web site on Dec. 7, 2009. These forms will support original and amended reports for report years 2008, 2009 and 2010. We also will notify our franchise tax e-mail subscribers when the forms are available.

Other Important Changes - New franchise tax filers

Initial franchise tax reports are going away! Entities becoming subject to the tax on or after October 4, 2009 will file annual reports each May 15. The first annual report will be due May 15 of the year after the calendar year the entity became subject to the tax. Rule 3.584 will be amended accordingly. See our updated Reports and Payments frequently asked questions (questions 28 -31) for more details about this change.

Tax Law Changes You Need to Know

The 81st Legislature made significant changes to Texas tax laws. The changes include the following:

• a new exemption from state and local sales and use taxes for certain school supplies during the annual August Sales Tax Holiday;
• revisions to the collection and allocation of local sales and use taxes;
• a new exemption for crude oil and natural gas taxes;
• a new method for calculating the tax on tobacco products other than cigars;
• a revised payment process for losses covered by the Texas Windstorm Insurance Association;
• a revision to the motor vehicle orthopedic handicap exemption; and
• a new Prepaid 9-1-1 Emergency Service Fee.