(a)Voluntary 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 (State
Taxation), by means of electronic transmission under the following
circumstances:
(1)the taxpayer or its authorized agent has registered
with the comptroller to use an approved reporting method, such as
WebFile, or the taxpayer is filing a return or report other than a
return showing a tax liability; and
(2)the method of electronic transmission of each return
or report complies with any requirements established by the comptroller
and is compatible with the comptroller's equipment and facilities.
(b)Required electronic transfer of certain payments
by certain taxpayers pursuant to Tax Code, §111.0625 (Electronic
Transfer of Certain Payments).
(1)This paragraph is effective with
the state fiscal year beginning September 1, 2018, for payments due
on or after January 1, 2019. This paragraph applies to a taxpayer
who pays the comptroller a total of $500,000 or more in any single
category of payments or taxes during the preceding state fiscal year,
and whom the comptroller reasonably anticipates will pay at least
that amount during the current state fiscal year. The comptroller
shall notify the taxpayer of this electronic funds transfer requirement
as provided in subsection (f) of this section. The taxpayer shall
transfer all payments in any category of payments or taxes that totaled
$500,000 or more to the comptroller using the State of Texas Financial
Network (TexNet), pursuant to Chapter 15 of this title (relating to
Electronic Transfer of Certain Payments to State Agencies). This requirement
applies to payments due beginning January 1 of each state fiscal year
in which a taxpayer is notified and continues for one calendar year.
For example, a taxpayer remits $500,000 in any single category of
taxes to the comptroller during the state fiscal year ending August
31, 2019. The comptroller reasonably anticipates that the taxpayer
will pay at least $500,000 in the same category of payments or taxes
for fiscal year ending August 31, 2020. The comptroller notifies the
taxpayer of the electronic payment requirement by October 31, 2019.
The taxpayer must begin transferring payments to the comptroller using
TexNet beginning on January 1, 2020. The taxpayer's electronic payment
requirement continues until December 31, 2020.
(2)[(1)] Taxpayers who [have]
paid the comptroller a total of $100,000 or more in any [
a] single category of payments or taxes and were notified
by the comptroller of a TexNet payment requirement must continue to
make those payments using TexNet for original or amended reports filed
for the calendar year for which the taxpayer was notified [during
the preceding state fiscal year, and who the comptroller reasonably
anticipates will pay at least that amount during the current fiscal
year, shall transfer all payment amounts in that category of payments
or taxes during the subsequent calendar year to the comptroller using
the State of Texas Financial Network (TexNet), pursuant to Chapter
15 of this title (relating to Electronic Transfer of Certain Payments
to State Agencies)].
(3)Beginning January 1, 2019, taxpayers
who paid $100,000 or more, but less than $500,000, in any single category
of payments or taxes during the preceding state fiscal year, and whom
the comptroller reasonably anticipates will pay at least that amount
during the current state fiscal year, shall transfer all payments
in that category of payments or taxes during the calendar year beginning
January 1 of the current state fiscal year to the comptroller by means
of electronic funds transfer as set out in paragraph (4)(C) of this
subsection. The comptroller shall notify the taxpayer of this electronic
funds transfer requirement as provided in subsection (f) of this section.
This requirement applies to payments due beginning January 1 of each
state fiscal year for which a taxpayer is notified and continues for
one calendar year. For example, a taxpayer remits $100,000 in any
single category of taxes to the comptroller during the state fiscal
year ending August 31, 2019. The comptroller reasonably anticipates
that the taxpayer will pay at least $100,000 in the same category
of payments or taxes for fiscal year ending August 31, 2020. The comptroller
notifies the taxpayer of the electronic payment requirement by October
31, 2019. The taxpayer must begin transferring payments to the comptroller
using one of the methods described in paragraph (4)(C) of this subsection
beginning on January 1, 2020. The taxpayer's electronic payment requirement
continues until December 31, 2020.
(4)[(2)] Taxpayers who paid
at least $10,000, but less than $100,000, in a single category of
payments or taxes as listed in subparagraph (A) of this paragraph during
the preceding state fiscal year, and whom [who]
the comptroller reasonably anticipates will pay at least that amount
during the current state fiscal year, shall transfer all payments
in that category of payments or taxes during the calendar year
beginning January 1 of the current state fiscal year to the
comptroller by means of electronic funds transfer as set out in subparagraph
(C) of this paragraph.
(A)This paragraph applies only to:
(i)state and local sales and use taxes;
(ii)direct payment sales tax;
(iii)gas severance tax;
(iv)oil severance tax;
(v)franchise tax;
(vi)gasoline tax;
(vii)diesel fuel tax;
(viii)hotel occupancy tax;
(ix)insurance premium taxes;
(x)mixed beverage gross receipts tax;
(xi)mixed beverage sales tax; and
(xii)motor vehicle rental tax.
(B)The comptroller may add or remove a category of
payments or taxes to or 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, but are not limited to, TexNet, electronic check (WebEFT),
and the electronic transmission of credit card information. The comptroller
may require payments in specific categories to be made by specific
methods of electronic funds transfer.
(D)A taxpayer required under this paragraph to use
electronic funds transfer 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.
(c)Payment date for electronic transfer of funds.
(1)[A taxpayer making payment using TexNet.]
Pursuant to §15.33 of this title (relating to Determination of
Settlement Date), a person who enters payment information into TexNet
may choose either to accept the settlement date that TexNet offers
or enter a settlement date up to 30 days from the business day after
payment is submitted. TexNet will offer the business day following
the day on which payment information is entered into TexNet, provided
that the information is entered by 6:00 p.m. central time on any business
day.
(2)A taxpayer who files [combined ]tax
returns and makes payments through the electronic data interchange
(EDI) system must submit the payment information to the comptroller
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].
(3)A taxpayer who makes payment by an electronic funds
transfer method approved by the comptroller other than TexNet or the
EDI system must transmit payment information by 11:59 p.m. central
time on the date payment is due.
(d)The administrative rules found in Chapter 15 of
this title on electronic funds transfer under Government Code, §404.095
(Electronic Transfer of Certain Payments) using TexNet apply
to all such payments to the comptroller.
(e)Required electronic filing of certain reports by
certain taxpayers.
(1)Reports required by Tax Code, §111.0626 (Electronic
Filing of Certain Reports).
(A)Pursuant to Tax Code, §111.0626(a)(1), taxpayers
who are required to use electronic funds transfer for payments of
certain taxes must also file report data electronically, including
reports required by the International Fuel Tax Agreement. This requirement
applies to:
(i)state and local sales and use taxes;
(ii)direct payment sales tax;
(iii)gas severance tax;
(iv)oil severance tax; and
(v)motor fuel tax.
(B)Pursuant to Tax Code, §111.0626(a)(2), taxpayers
who owe no tax and are required to file an information report under
Tax Code, §171.204 (Information Report) must file
the information report electronically.
(C)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 provided by the comptroller, software provided
by the comptroller, or commercially available software that satisfies
requirements prescribed by the comptroller. This subparagraph only
applies after issuance to the taxpayer of the 60 days notice required
by subsection (f) of this section.
(2)Reports by brewers, manufacturers, wholesalers,
and distributors of alcoholic beverages required by Tax Code, Chapter
151, Subchapter I-1 (Reports by Persons Involved in the Manufacture
and Distribution of Alcoholic Beverages).
(A)For purposes of this paragraph, a "seller" means
a person who is a brewer with a brewer's self-distribution permit,
manufacturer with a manufacturer's self-distribution license, wholesaler,
winery, distributor, or package store local distributor, as described
in Tax Code, §§151.461(1) - (4) and (6) (Definitions),
151.465(Applicability to Certain Brewers), and 151.466 (Applicability
to Certain Manufacturers); and a "retailer" means a person who
holds one or more of the permits listed in Tax Code, §151.461(5).
(B)On or before the 25th day of each month, each seller
holding a comptroller-issued tax identification number must file a
report of alcoholic beverage sales to retailers in this state. The
report must be filed by a means of electronic transmission approved
by the comptroller. The report must contain the following information:
(i)each Texas Alcoholic Beverage Commission (TABC)
permit or license associated with the seller's comptroller-issued
tax identification number;
(ii)the TABC permit or license number for each seller
location from which a sale was made to a retailer during the preceding
calendar month;
(iii)the TABC permit or license number, comptroller-issued
tax identification number, and TABC trade name and physical address
(street name and number, city, state, and zip code) of each retail
location to which the seller sold alcoholic beverages during the preceding
calendar month;
(iv)the information required by Tax Code, §151.462(b)
(Reports by Brewers, Manufacturers, Wholesalers and Distributors) regarding
the seller's monthly sales to each retailer holding a separate TABC
permit or license, including:
(I)the individual container size of each product,
such as the individual bottle or can container size, sold to retailers;
(II)the brand name of the alcoholic beverage sold;
(III)the beverage class code for distilled spirits,
wine, beer, or malt beverage;
(IV)the Universal Product Code (UPC) of the alcoholic
beverage sold;
(V)the number of individual containers of alcoholic
beverages sold for each brand, UPC, and container size. Multi-unit
packages, such as cases, must be broken down into the number of individual
bottles or cans;
(VI)the total selling price of the containers sold;
and
(v)any other information deemed necessary by the comptroller
for the efficient administration of this subsection.
(C)If a person fails to file a report required by
subparagraph (B) of this paragraph, or fails to file a complete report,
the comptroller may:
(i)suspend or cancel one or more permits issued to
the person under Tax Code, §151.203 (Suspension and Revocation
of Permit);
(ii)impose a civil penalty under Tax Code, §151.703(d)
(Failure to Report or Pay Tax);
(iii)impose a criminal penalty under Tax Code, §151.709
(Failure to Furnish Report; Criminal Penalty); and/or
(iv)notify the TABC of the failure and the TABC may
take administrative action against the person for the failure under
the Alcoholic Beverage Code.
(D)In addition to the penalties imposed under subparagraph
(C) of this paragraph, if a person violates Tax Code, Chapter 151,
Subchapter I-1, or this paragraph, the comptroller shall collect from
the seller an additional civil penalty of not less than $25 or more
than $2,000 for each day the violation continues.
(E)The requirements of this paragraph apply to sales
occurring on or after September 1, 2011.
(3)Reports by wholesalers and distributors of cigarettes.
Pursuant to Tax Code, §154.212 (Reports by Wholesalers and
Distributors of Cigarettes), on or before the 25th day of each
month each wholesaler or distributor of cigarettes shall file a report
of sales to retailers in this state. The report must be filed by a
means of electronic transmission approved by the comptroller and must
contain the following information for the preceding calendar month's
sales made to each retailer:
(A)the name of the retailer and the address, including
city and zip code, of the retailer's outlet location to which the
wholesaler or distributor delivered cigarettes;
(B)the comptroller-assigned taxpayer number of the
retailer, if the wholesaler or distributor is in possession of the
number;
(C)the cigarette permit number of the outlet location
to which the wholesaler or distributor delivered cigarettes;
(D)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
(E)any other information deemed necessary by the comptroller
for the efficient administration of this subsection.
(4)Reports by wholesalers and distributors of cigars
and tobacco products. Pursuant to Tax Code, §155.105 (Reports
by Wholesalers and Distributors of Cigars and Tobacco Products),
on or before the 25th day of each month each wholesaler or distributor
of cigars or tobacco products shall file a report of sales to retailers
in this state. The report must be filed by a means of electronic transmission
approved by the comptroller and must contain the following information
for the preceding calendar month's sales made to each retailer:
(A)the name of the retailer and the address, including
the city and zip code, of the retailer's outlet location to which
the wholesaler or distributor delivered cigars or tobacco products;
(B)the comptroller-assigned taxpayer number of the
retailer, if the wholesaler or distributor is in possession of the
number;
(C)the tobacco permit number of the outlet location
to which the wholesaler or distributor delivered cigars or tobacco
products;
(D)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;
(E)the net weight as listed by the manufacturer for
each unit of tobacco products other than cigars; and
(F)any other information deemed necessary by the comptroller
for the efficient administration of this subsection.
(5)Except as provided by Tax Code, §111.006 (Confidentiality
of Information), 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 (Public
Information).
(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.
(7)The reports required by paragraphs (2), (3), and
(4) of this subsection must be filed each month even if no sales were
made to retailers during the preceding month.
(f)Notification of affected persons. The comptroller
shall notify taxpayers who are affected by subsection (b) or (e)(1)
of this section no less than 60 days before the first required electronic
transmittal of report data or payment.
(g)A taxpayer who is required to file report data
electronically under subsection (e)(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
(e)(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.
Cont'd...
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