| (a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008. (b) Taxable and nontaxable entities. See §3.581 of this title (relating to Margin: Taxable and Nontaxable Entities) for a list of taxable and nontaxable entities. (c) Extension to November 15. Except for a taxable entity which has been notified by the comptroller that it is required to make its franchise tax payments by electronic funds transfer (see subsections (d), (f), and (g) of this section), a taxable entity will be granted an extension to file an annual report on or before the next November 15, if the taxable entity: (1) requests the extension on or before May 15; (2) requests the extension on a form provided by the comptroller; and (3) remits with the extension request: (A) 90% or more of the amount of tax reported as due on the report filed on or before November 15; or (B) 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested. A combined group may only use this 100% option if the combined group has lost a member or if the members of the combined group are the same as they were on the last day of the period upon which the report due in the previous calendar year was based. A separate entity that was included in a combined group report originally due in the previous calendar year may not use the 100% extension option. (d) No previous report. An extension shall not be granted under subsections (c)(3)(B) or (f)(3)(B) of this section, if no report was due in the previous calendar year or the report due in the previous calendar year is not filed on or before May 14 of the year for which the extension is requested. (e) Penalty and interest. Penalty and interest, except for a taxable entity which has been notified by the comptroller that it is required to make its franchise tax payments by electronic funds transfer (see subsection (h) of this section), will be calculated as though the following were due dates. (1) If a taxable entity is granted an extension and pays, on or before May 15, at least 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested, then November 15 will be the due date for any additional tax due. (2) If a taxable entity is granted an extension and pays on or before May 15, 90% or more of the tax which will be reported as due on or before November 15, then November 15 will be the due date for any additional tax due. (3) If a taxable entity, on or before May 15, requests an extension but does not qualify for an extension under paragraphs (1) or (2) of this subsection, then May 15 is the due date for 90% of the tax finally determined to be due and November 15 is the due date for 10% of the tax finally determined to be due. (f) Required electronic funds transfer extension to August 15. Subject to paragraphs (1) - (3) of this subsection, a taxable entity which has been notified by the comptroller that it is required to make its franchise tax payments by electronic funds transfer (see §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers)) will be granted an extension to file an annual report on or before the next August 15. A combined group is required to make its franchise tax payments by electronic funds transfer if any member of the combined group receives notice of the requirement. An extension to August 15 will be granted if the taxable entity: (1) requests the extension on or before May 15; (2) requests the extension on a form provided by the comptroller; and (3) remits with the extension request: (A) 90% or more of the amount of tax reported as due on the report filed on or before August 15; or (B) 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested. A combined group may only use this 100% option if the combined group has lost a member or if the members of the combined group are the same as they were on the last day of the period upon which the report due in the previous calendar year was based. A separate entity that was included in a combined group report originally due in the previous calendar year may not use the 100% extension option. (g) Required electronic funds transfer second extension to November 15. A taxable entity granted an extension under subsection (f) of this section, will be granted an extension to file an annual report on or before the next November 15, if the taxable entity: (1) requests the extension on or before August 15; (2) requests the extension on a form provided by the comptroller; and (3) remits with the request the difference between the amount paid previously for the current reporting period and 100% of the amount of tax reported as due on the report filed on or before November 15. (h) Required electronic funds transfer penalty and interest. Penalty and interest will be calculated as though the following were due dates. (1) If a taxable entity is granted an extension until August 15 and pays, on or before May 15, at least 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested, then August 15 will be the due date for any additional tax due. However, if the taxable entity requests, on or before August 15, an extension until November 15, and remits, on or before August 15, 99% of the amount reported as due on or before November 15, then November 15 will be the due date for any additional tax due. (2) If a taxable entity is granted an extension until August 15 and pays, on or before May 15, 90% or more of the tax which will be reported as due on or before August 15, then August 15 will be the due date for any additional tax due. However, if the taxable entity requests, on or before August 15, an extension until November 15, and remits, on or before August 15, 99% of the amount reported as due on or before November 15, then November 15 will be the due date for any additional tax due. (3) If a taxable entity, on or before May 15, requests an extension until August 15, but does not qualify for an extension under paragraphs (1) or (2) of this subsection, then May 15 is the due date for 90% of the tax finally determined to be due. August 15 is the due date for the remaining 10% of the tax finally determined to be due. However, if the taxable entity requests, on or before August 15, an extension until November 15, and remits on or before August 15 at least 99% of the amount reported as due on or before November 15, then May 15 is the due date for 90% of the amount reported as due on or before November 15, August 15 is the due date for 90% of the amount reported as due on or before November 15, and November 15 is the due date for any additional tax due. (i) No additional extensions. No additional extensions will be granted for annual franchise tax reports pursuant to Tax Code, §111.057. |
