TEXAS COMPTROLLER OF PUBLIC ACCOUNTS BACK TAX RELIEF

TX Comptroller Monthly Payment Plan

Texas has some pretty stringent rules in place when it comes to paying back taxes.  A few tips to setting up an installment agreement with the Comptroller’s office.

• Current tax compliance is vital.
• Expect to make a 25% down payment. 
• The Comptroller’s office may give you a list of documents they will need in order to consider your request.  Past years income tax returns, credit references and loan denial letters are common.
• Expect to personally guarantee payment of the debt through monthly installments.
• You may need to provide a bond to guarantee payment.
• You should expect to go into your local office to get this done in person.
• No payment plans allowed for Beverage Tax.

State of Texas Offer in Compromise

Delinquent taxpayers in Texas will not find an Offer in Compromise program as an option to resolve back tax liabilities. Unfortunately, the Comptroller’s office doesn’t show much leniency toward businesses that owe taxes.

Penalty Relief

You may request a waiver of penalties under certain conditions.  Here are a few of them from the Comptrollers website.

• Again, compliance is considered heavily.
• The tax portion of the debt needs to be paid.
• If you’ve received a waiver in the past 2 years, your business is not eligible for a penalty waiver.
• The max number of report periods eligible for a waiver of penalties is as follows:
  • 1 annual report period,
  • 2 quarterly report periods
  • 6 monthly report periods
• You have to request the waiver of penalties within 4 years from the date the tax was due.
• You don’t qualify if your bank account was seized due to non-payment of the tax or if your account was outsourced to a collection agency.
• Your business registration with the Secretary of State must be up to date.
•  You will need to advise the Comptroller’s office of the steps you’ve taken to ensure the lack of compliance will not happen again.