TAX NEWS - 2010

Texas Income / Franchise Tax: Publication addresses franchise tax reporting & compliance tips for combined groups

Publication No. 98-862: Franchise Tax Reporting Tips for Combined Groups, Tex. Cmptrlr. (June 2010). A new department publication lists compliance-related tips for unitary combined groups filing a combined Texas franchise "margin" tax report, addressing such topics as taxpayer numbers, extensions, payments, and affiliate lists/schedules.

The publication also reminds filers that they must appropriately "blacken the circle" (on Form 05-165, Affiliate List, and Form 05-166, Affiliate Schedule) when an entity does not have nexus in Texas; if left blank, the comptroller will assume the entity has nexus and will expect the applicable information report.

Also, if an entity ceases to have nexus, the filer must blacken the corresponding circle and complete Form AP-114, Texas Nexus Questionnaire, to provide an end date of activity so that the department can close the account.