Texas Franchise Tax Filing Guide: 2024 UPDATE

There have been some changes in Texas franchise tax law that you need to know about.
In this video, you'll learn:
👉 What is TX franchise tax
👉 The changes in the laws in 2024
👉 Who needs to worry about it
👉 Step-by-step walkthrough for how to fill out the EZ Computational Report
👉 Step-by-step walkthrough for how to fill out the Long Form Report
Important Links:
** TX Comptroller website: **
comptroller.texas.gov/taxes/f...
CLARIFICATION: "For reports originally due on or after Jan. 1, 2024, a taxable entity whose annualized total revenue is less than or equal to $2.47 million is no longer required to file a No Tax Due Report. However, the entity is still required to file Form 05-102, Public Information Report (PDF) or Form 05-167, Ownership Information Report (PDF)." comptroller.texas.gov/taxes/f...
** TX franchise tax extension information **
comptroller.texas.gov/taxes/f...
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[@potomoc11]

Great video. Very informative. I read the instructions on the Comptroller's website and they indicate that even if your revenues are below $2.47M, you still have to file a PIR or face a $50 fine. Can you clarify that? Thanks.

[@LedgerGurus]

That is correct. comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php#:~:text=Taxpayers%20Under%20the%20No%20Tax,a%20No%20Tax%20Due%20Report.

[@user-np1gf1hx5p]

@@LedgerGurus Form 05-102, Public Information Report (PDF) or Form 05-167, Ownership Information Report (PDF), I'm confused on which one I need to file?

[@conversionestates4483]

What about the last minute and late people (asking for a friend)? Is there a fee for filing after 5/15/24?

[@LedgerGurus]

Yes, there is a penalty for filing after the due date. comptroller.texas.gov/taxes/franchise/#:~:text=Penalties%20and%20Interest&text=A%20%2450%20penalty%20is%20assessed,5%20percent%20penalty%20is%20assessed.

[@Islamic11110]

Ma'am they want at the beginning xt number and i am not finding it on every document can you tell me where is XT number ??

[@LedgerGurus]

You should be able to find it by logging into your portal on the TX comptroller website.

[@AbbasKanchwala-im5pv]

My company is registered in 2022 with total revenue for 2023 is less than the threshold $2.47M. Do I need to fill the EZ computation or Information report only.

[@LedgerGurus]

Probably just an information report.

[@Islamic11110]

And also ma'am i made for ecomerce and whole year i didn't do any sales so what should I do I have zero sales

[@LedgerGurus]

This should help answer your question: comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php

[@superjtrdr]

where do you subtract cost of goods sold on the EZ form?

[@LedgerGurus]

A taxable entity that elects to use the E-Z Computation is not eligible for the cost of goods sold, compensation or other margin deductions and may not claim any credits (Texas Tax Code Section 171.1016). comptroller.texas.gov/taxes/franchise/faq/reports-payments.php#:~:text=A%20taxable%20entity%20that%20elects,Texas%20Tax%20Code%20Section%20171.1016).

[@anshukabathla868]

My organisation is non profit organisations . Do I need file franchise tax? Please clarify

[@LedgerGurus]

A nonprofit corporation organized under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) is exempt from franchise and sales taxes. comptroller.texas.gov/taxes/publications/96-1045.php#:~:text=A%20nonprofit%20corporation%20organized%20under,from%20franchise%20and%20sales%20taxes.

[@tcaldwell5330]

I received a letter & began my business in 2023 it hasn’t received any revenue do I still have to file? If so what form the PIR or OIR. I understand the money threshold but isn’t this for all businesses in TX I have an LLC…so confused

[@LedgerGurus]

This should help answer your question: comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php

[@tcaldwell5330]

For anyone still unsure you still have to file. I filed the OIR form. I called the comptroller office & got an awesome agent who walked me through the entire process online.

[@2292kika]

I got this message "what is that mean No period obligations found for taxpayer" when I try to fill and information report ? any idea why they won't let fill it ? I open my llc Sep 2019 and I'ma veteran. Please advice.

[@alejandrachavez2096]

That's the same thing that happened to me, do you know if we have to do something about it or are we fine?

[@LedgerGurus]

You need to call the state because there is an issue with your account.

[@LedgerGurus]

If you're ready to hand over filing sales tax and franchise tax to someone else, let the experts at LedgerGurus help you. We have a whole team that is dedicated to this stuff. Click here to learn more about our services: ledgergurus.com/ecommerce-accounting-services/sales-tax/?