| prepayment exceeded the actual liability,
the permit holder will be mailed an overpayment notice or refund warrant.
(E) Remittances that are less than a reasonable estimate,
as described by this paragraph, are not regarded as prepayments and
the 1.25% discount will not be allowed. If the permit holder owes
more than $1,500 in a calendar quarter, the permit holder is regarded
as a monthly filer. All monthly sales and use tax returns that are
not filed because of the invalid prepayment are subject to late filing
penalty and interest.
(3) Penalties and interest.
(A) If a person does not file a sales and use tax return
together with payment on or before the due date, the person forfeits
all discounts and incurs a mandatory 5.0% penalty. After the first
30 days delinquency, an additional mandatory penalty of 5.0% is assessed
against the person, and after the first 60 days delinquency, interest
begins to accrue at the prime rate, as published in the Wall Street
Journal on the first business day of each calendar year, plus 1.0%.
For taxes that are due on or before December 31, 1999, interest is
assessed at the rate of 12% annually.
(B) A person who fails to timely file a sales and use
tax return when due shall pay an additional penalty of $50. The penalty
is due regardless of whether the person subsequently files the sales
and use tax return or whether no taxes are due for the reporting period.
(C) A seller who advertises, holds out, or states that
the seller will pay the sales and use tax as provided by subsection
(d)(4) of this section and makes a sale of a taxable item:
(i) is presumed to have received or collected the amount
of the sales and use taxes on the sale or storage, use, or consumption
in this state of the taxable item;
(ii) must hold the amount described by clause (i) of
this subparagraph in trust for the benefit of the state; and
(iii) is liable to the state for the amount described
by clause (i) of this subparagraph plus any accrued penalties and
interest on the amount.
(i) Reports of alcoholic beverage sales to retailers.
Each brewer, manufacturer, wholesaler, winery, distributor, or package
store local distributor shall electronically file a report of alcoholic
beverage sales to retailers, as that term is defined in §3.9(e)(2)
of this title, as provided in that section.
(j) Records required for comptroller inspection. See §3.281
of this title and §3.282 of this title.
(k) Resale and exemption certificates. See §3.285
of this title (relating to Resale Certificate; Sales for Resale) and §3.287
of this title (relating to Exemption Certificates).
(l) Suspension of sales and use tax permit.
(1) If a permit holder fails to comply with any provision
of Tax Code, Title 2, or with the rules issued by the comptroller
under those statutes, the comptroller may suspend the permit holder's
sales and use tax permit or permits.
(2) Before a permit holder's sales and use tax permit
is suspended, the permit holder is entitled to a hearing before the
comptroller to show cause why the permit should not be suspended.
The comptroller shall give the permit holder at least 20 days notice.
The notice will include a statement of the matters asserted and procedures
to be followed. A show cause notice for suspension of a sales and
use tax permit shall serve as notice that the comptroller may suspend
any other sales and use tax permits held by the entity.
(3) After a sales and use tax permit has been suspended,
a new permit will not be issued to the same person until the person
has posted sufficient security and satisfied the comptroller that
the person will comply with both the provisions of the law and the
comptroller's rules and regulations.
(m) Refusal to issue sales and use tax permit. The
comptroller is required by Tax Code, §111.0046 (Permit or License),
to refuse to issue any sales and use tax permit to a person who:
(1) is not permitted or licensed as required by law
for a different tax or activity administered by the comptroller; or
(2) is currently delinquent in the payment of any tax
or fee collected by the comptroller.
(n) Cancellation of sales and use tax permits with
no reported business activity.
(1) Permit cancellation due to abandonment. Any holder
of a sales and use tax permit who reported no business activity in
the previous calendar year is deemed to have abandoned the sales and
use tax permit, and the comptroller may cancel the sales and use tax
permit. "No business activity" means zero total sales, zero taxable
sales, and zero taxable purchases.
(2) Re-application. If a sales and use tax permit is
cancelled, the person may reapply and obtain a new sales and use tax
permit upon request, provided the issuance is not prohibited by subsection
(m) of this section, or by Tax Code, §111.0046.
(o) Liability related to acquisition of a business
or assets of a business. Tax Code, §111.020 (Tax Collection on
Termination of Business) and §111.024 (Liability in Fraudulent
Transfers), provides that the comptroller may impose a tax liability
on a person who acquires a business or the assets of a business. See §3.7
of this title (relating to Successor Liability: Liability Incurred
by Purchase of a Business).
(p) Criminal penalties. Tax Code, Chapter 151, imposes
criminal penalties for certain prohibited activities or for failure
to comply with certain provisions under the law. See §3.305 of
this title (relating to Criminal Offenses and Penalties).
|
| Source Note: The provisions of this §3.286 adopted to be effective December 12, 1996, 21 TexReg 11800; amended to be effective September 25, 2002, 27 TexReg 8952; amended to be effective April 13, 2005, 30 TexReg 2078; amended to be effective December 2, 2007, 32 TexReg 8521; amended to be effective July 11, 2010, 35 TexReg 6085; amended to be effective June 3, 2015, 40 TexReg 3183; amended to be effective August 14, 2016, 41 TexReg 5762; amended to be effective January 1, 2019, 43 TexReg 8133; amended to be effective January 1, 2020, 44 TexReg 8317 |
