Texas Comptroller’s Office Extends Franchise Tax Deadline

(AUSTIN) — In response to the recent winter storm and power outages in the state, Texas Comptroller Glenn Hegar announced that his agency is automatically extending the due date for 2021 franchise tax reports from May 15 to Jun. 15. The extension aligns the agency with the Internal Revenue Service (IRS), which earlier this week extended the Apr. 15 tax-filing and payment deadline to Jun. 15 for all Texas residents and businesses.

The due date extension applies to all franchise taxpayers. It is automatic, and taxpayers do not need to file any additional forms.

“To assist businesses coping with the unprecedented winter storm and resulting power outages and water shortages, we thought it appropriate to align the state’s franchise tax deadline with the IRS deadline. Just as we did last year when the IRS moved its filing deadline back because of the pandemic,” Hegar said. “Texas businesses and business owners should be focused on recovery efforts and the health and well-being of their families, employees, and communities, and I am hopeful this action gives them that added flexibility.”

The information aggregated from taxpayers’ federal tax returns comprises the building blocks for their Texas franchise tax returns. Texas imposed the Texas franchise tax on each taxable entity formed or organized in Texas or doing business in Texas.

Franchise taxpayers who need an extension beyond the Jun. 15 date have these options:

• Non-electronic funds transfer (non-EFT) taxpayers who cannot file by Jun. 15 may file an extension request on or before Jun. 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported due for the prior year, with the extension request. Non-EFT taxpayers who request an extension have until Nov. 15 to file their report and pay the remainder of the tax due.
• On or before Jun. 15, taxpayers who are mandatory EFT payers may request an extension of time to file to Aug. 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported due for the prior year, with the extension request. On or before Aug. 15, EFT taxpayers may request a second extension of time to file their report and pay the remainder of any tax due to their extension request. The Aug. 15 extension request extends the statement due date to Nov. 15. Any payments made after Aug. 15 will be subject to penalty and interest.