(a)Electronic filing of returns and reports. The comptroller may authorize a taxpayer to file any report or return required to be filed with the comptroller under Tax Code, Title 2, by means of electronic transmission under the following circumstances: (1)the taxpayer or its authorized agent has registered [entered into a written agreement] with the comptroller , or has been authorized by the comptroller through the issuance of a password or personal identification number (PIN) to [that permits the taxpayer to] use an [the] electronic method of filing returns and reports[. The signature of the taxpayer or its authorized agent on the written agreement into which the parties have entered for this purpose shall be deemed to appear on each report or return that is filed electronically with the comptroller as if actually included on the report or return]; and (2)the method of electronic transmission of each return or report shall be made in a manner compatible with the comptroller's equipment and facilities. (b)Electronic transfer of certain payments by certain taxpayers. [(1)For payments that are due before January 1, 2002, the comptroller, pursuant to Government Code, §404.095(c), shall require persons who have paid the comptroller a total of $250,000 or more in a single category of payments or taxes during the preceding state fiscal year to transfer all payment amounts in that category of payments or taxes to the comptroller by means of electronic funds transfer.] (1)[(2)] For payments that are due on or after January 1, 2002, the comptroller, pursuant to Tax Code, §111.0625, shall require taxpayers who have paid the comptroller a total of $100,000 or more in a single category of payments or taxes during the preceding state fiscal year to transfer all payment amounts in that category of payments or taxes to the comptroller by means of electronic funds transfer. (2)Electronic transfer of amounts under $100,000 in certain categories. (A)For payments that are due on or after May 1, 2008, the comptroller, pursuant to Tax Code, §111.0625, shall require taxpayers who paid at least $10,000, but less than $100,000, in a single category of payments or taxes described in this paragraph during the preceding state fiscal year to transfer all payments in that category of payments or taxes to the comptroller by means of electronic funds transfer if the comptroller reasonably anticipates the taxpayer will pay at least that amount during the current fiscal year. This paragraph applies only to: (i)state and local sales and use taxes; (ii)direct payment sales taxes; (iii)gas severance taxes; (iv)oil severance taxes; (v)franchise taxes; (vi)gasoline taxes; (vii)diesel fuel taxes; (viii)hotel occupancy taxes; (ix)insurance premium taxes; (x)mixed beverage gross receipts taxes; (xi)motor vehicle rental taxes; and (xii)telecommunications infrastructure fund assessments. (B)The comptroller may add or remove a category of payments from this paragraph if the comptroller determines that such action is necessary to protect the interests of the state or of taxpayers. (C)Payments under this paragraph shall be made by those electronic funds transfer methods approved by the comptroller, which include TEXNET, electronic check (WebEFT) and the electronic transmission of credit card information. The comptroller may authorize additional methods as technology evolves. The comptroller may require payments in specific categories to be made by specific methods of electronic funds transfer. (D)A taxpayer who is required to pay by electronic funds transfer under this paragraph who cannot comply due to hardship, impracticality or other valid reason may submit a written request to the comptroller for a waiver of the requirement. (E)Except as provided in subsection (d) of this section, for persons using TEXNET, a person making a payment by other electronic funds transfer methods approved by the comptroller must transmit payment information by 11:59 p.m. central time on the date payment is due. (c)Electronic filing of reports by certain taxpayers. (1)Reports required by Tax Code, §111.0626. (A)Pursuant to Tax Code, §111.0626(a) , taxpayers who are required by Tax Code, §111.0625, to use electronic funds transfer for tax payments that are made under Tax Code, Chapters 151, 201, 202, and the International Fuel Tax Agreement must also file report data electronically. This requirement applies to report data that is due on or after January 1, 2002. (B)Pursuant to Tax Code, §111.0626(b-1), taxpayers who paid $50,000 or more during the preceding fiscal year must file report data electronically. A taxpayer filing a report electronically may use an application or software provided by the comptroller or commercially available software that satisfies requirements prescribed by the comptroller. This subparagraph applies to reports due on or after September 1, 2008, but only after issuance to the taxpayer of the 60 days notice required by subsection (e) of this section. (2)Reports by wholesalers and distributors of beer, wine, or malt liquor. Pursuant to Tax Code, §151.433, each wholesaler or distributor of beer, wine, or malt liquor shall electronically file on or before the 25th day of each month a report of sales to retailers in this state. (A)The report must contain the following information for the preceding calendar month's sales in relation to each retailer: (i)the name of the retailer and the address of the retailer's outlet location to which the wholesaler or distributor delivered beer, wine, or malt liquor, including the city and zip code; (ii)the comptroller assigned taxpayer number of the retailer, if the wholesaler or distributor is in possession of the number; (iii)the permit or license number assigned to the retailer by the Texas Alcoholic Beverage Commission; (iv)the monthly net sales made to the retailer by outlet, including the quantity and units of beer, wine, and malt liquor sold to the retailer and the price charged to the retailer; and (v)any other information deemed necessary by the comptroller for the efficient administration of this subsection. (B)If a person fails to file a report required by this subsection or fails to file a complete report, the comptroller may suspend or cancel one or more permits issued to the person under Tax Code, §151.203, and may impose a civil or criminal penalty, or both, under Tax Code, §151.7031 or §151.709. (C)If a person fails to file a report required by this subsection or fails to file a complete report, the comptroller may notify the Texas Alcoholic Beverage Commission of the failure and the commission may take administrative action against the person for the failure under the Alcoholic Beverage Code. (D)This requirement applies to sales occurring on or after January 1, 2008. (E)A report required by paragraph (2) of this subsection, must be filed each month even if the wholesaler or distributor made no sales to retailers during the preceding month. (3)Reports by wholesalers and distributors of cigarettes. Pursuant to Tax Code, §154.212, each wholesaler or distributor of cigarettes shall electronically file on or before the 25th day of each month a report of sales to retailers in this state. (A)The report must contain the following information for the preceding calendar month's sales in relation to each retailer: (i)the name of the retailer and the address of the retailer's outlet location to which the wholesaler or distributor delivered cigarettes, including city and zip code; (ii)the comptroller assigned taxpayer number of the retailer, if the wholesaler or distributor is in possession of the number; (iii)the cigarette permit number of the outlet location to which the wholesaler or distributor delivered cigarettes; (iv)the monthly net sales made to the retailer, including the quantity and units of cigarettes in stamped packages sold to the retailer and the price charged to the retailer; and (v)any other information deemed necessary by the comptroller for the efficient administration of this subsection. (B)This requirement applies to sales occurring on or after January 1, 2008. (C)A report required by paragraph (3) of this subsection, must be filed each month even if the wholesaler or distributor made no sales to retailers during the preceding month. (4)Reports by wholesalers and distributors of cigars and tobacco products. Pursuant to Tax Code, §155.105, each wholesaler or distributor of cigars or tobacco products shall electronically file on or before the 25th day of each month a report of sales to retailers in this state. (A)The report must contain the following information for the preceding calendar month's sales in relation to each retailer: (i)the name of the retailer and the address of the retailer's outlet location to which the wholesaler or distributor delivered cigars or tobacco products, including the city and zip code; (ii)the comptroller assigned taxpayer number of the retailer, if the wholesaler or distributor is in possession of the number; (iii)the tobacco permit number of the outlet location to which the wholesaler or distributor delivered cigars or tobacco products; (iv)the monthly net sales made to the retailer, including the quantity and units of cigars and tobacco products sold to the retailer and the price charged to the retailer; and (v)any other information deemed necessary by the comptroller for the efficient administration of this subsection. (B)This requirement applies to sales occurring on or after January 1, 2008. (C)A report required by paragraph (4) of this subsection, must be filed each month even if the wholesaler or distributor made no sales to retailers during the preceding month. (5)Except as provided by Tax Code, §111.006, information contained in the reports required by paragraphs (2), (3) and (4) of this subsection is confidential and not subject to disclosure under Government Code, Chapter 552. (6)The reports required by paragraphs (2), (3) and (4) of this subsection are required in addition to any other reports required by the comptroller. (d)Applicability of other [the state treasurer's] administrative rules. The administrative rules [of the former state treasurer's office] on electronic funds transfer found in Chapters 15 and 16[, §§15.2, 15.4 - 15.15, 15.17, and 16.1] of this title [(relating to Penalties, Protested Tax Payments, State Agency Rules Requirements, Applicability Determination and Notification Procedures, Voluntary Payments by Electronic Funds Transfer, Payor Information, Means of Electronic Funds Transfer, Transmission of Payment Information, Determination of Settlement Day, Transfer of Funds to the Treasury, Backup Procedures, Late Payments, Proof of Payment, Effective Date, and Adoption by Reference), ] shall be applicable to all such payments to the comptroller. (1)Pursuant to §15.11 of this title (relating to Determination of Settlement Day), a person who enters payment information into the applicable electronic fund transfer (EFT) system may choose to either accept the settlement day that the EFT system offers or enter a settlement day up to 30 days in the future. The EFT system will offer the business day following the day on which payment information is entered into the EFT system, provided that the information is entered by 6:00 p.m. central time on any day other than a weekend or banking holiday. (2)A person who files combined tax returns and makes payments through the electronic data interchange (EDI) system must enter the payment information into the EDI system by 2:30 p.m. central time to meet the 6:00 p.m. central time requirement that is noted in paragraph (1) of this subsection. (e)Notification of affected persons. With the exception of persons affected by subsection (c)(2), (3) or (4) of this section, the comptroller shall notify taxpayers who are affected by this section no less than 60 days before the first required electronic transmittal of report data or payment. (f)A taxpayer who is required to electronically file report data under subsection (c)(1) of this section may submit a written request to the comptroller for a waiver of the requirement. A taxpayer who is required to electronically file a report under subsection (c)(2), (3) or (4) of this section may submit a written request to the comptroller for a waiver of the requirement and authorization of an alternative filing method. (g)Pursuant to Tax Code, §111.063, the comptroller may impose separate penalties [a penalty] of 5.0% of the tax due for failure to pay by electronic funds transfer, as required by this section or failure to electronically file a report under Tax Code, §111.0626. (h)Protest payments by electronic funds transfer. Protested tax payments made under Tax Code, §112.051, must be accompanied by a written statement that fully and in detail sets out each reason for recovery of the payment and are not required to be submitted by electronic funds transfer. (1)A person who is otherwise required to pay taxes by means of electronic funds transfer may make protested payments by other means, including cash, check, or money order. This exception to the electronic funds transfer requirement is allowed if a written statement of protest accompanies the non-electronic payment. (2)A person may submit a protested tax payment by means of electronic funds transfer if the written statement is submitted in compliance with the requirements set out in subparagraph (A) of this paragraph. (A)A person may submit a protest payment by means of electronic funds transfer only if: (i)a written statement of protest is delivered by facsimile transmission or hand-delivery actually received at one of the comptroller's offices in Austin, Texas; (ii)the written statement of protest is delivered to the comptroller within 24 hours before or after the electronic transfer of the payment; (iii)the written statement of protest identifies the date of electronic payment, the taxpayer number under which the electronic payment was or will be submitted, and the amount paid under protest; and (iv)the electronic payment is specifically identified as a protest payment by the method, if any (such as a special transaction code or accompanying electronic message), that the comptroller may designate as appropriate to the method by which the person transferred the funds electronically. (B)The failure of a taxpayer to submit a written statement in compliance with subparagraph (A) of this paragraph means the tax payment that the taxpayer made is not considered to be a protest tax payment as provided by Tax Code, §112.051. (C)If a person submits multiple written statements of protest that relate to the same electronic payment, then only the first statement that the comptroller actually receives is considered the written protest for purposes of Tax Code, §112.051.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office
of the Secretary of State on
December 10, 2007
TRD-200706251 Martin Cherry
General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: January 20, 2008
For further information, please call: (512) 475-0387
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