How did the Comptroller's internal timeline assign annual franchise-tax report due dates, penalties, and interest when an extension was late, adequately paid, or only partially paid?

Plain-English summary

This internal guidance provided three annual franchise-tax report timelines. Weekend or legal-holiday due dates moved to the next working day, but a penalty or interest accrual date falling on a weekend or holiday was not adjusted.

The first timeline applied when an extension was not timely requested or a timely request did not include at least the stated $68 minimum tax by March 15. Under those conditions, March 15 was the due date for both the report and tax due for the period.

The second applied when the extension was timely and accompanied by 100% of the prior year's tax or 90% of the tax reported on June 15. Under those conditions, June 15 was the due date for additional tax.

The third showed a split penalty-and-interest calculation for a partial-payment situation and included a numerical example. Its condition line is incomplete or unclear in the reproduced STAR text, so this page does not infer the missing threshold. The verbatim timeline and example remain below.

Common questions

What due date applied without a timely qualifying extension? March 15.

What payment supported the June 15 additional-tax due date? The memo stated 100% of the previous year's tax or 90% of the tax determined due on June 15.

What if a calendar due date fell on a weekend or legal holiday? The next working day became the due date.

Did the memo clearly reproduce the entire third condition? No.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8606L0737D11

Original ruling text

PENALTY & INTEREST ACCRUAL DATES FOR ANNUAL FRANCHISE TAX REPORTS

NOTE: If a due date falls on a Saturday, Sunday, or legal holiday the next
working day becomes the due date. The dates penalty and interest accrue
must be adjusted accordingly. If the date penalty or interest begins to
accrue falls on a weekend or holiday, no adjustment needs to be made.

(1) Use this time line for the following situations only:

3/15 4/15 5/15 6/15 7/15 8/15

Due Date Penalty Additional Penalty Interest @ 10% Per Annum
-----------(3/16-4/14)-----(4/15-5/14)----------

Conditions:
Extension is not timely requested (3/15), OR Extension timely requested but
did not include at least $68 minimum tax on or before 3/15

Under either of these conditions, March 15 will be the due date for the
report and any amount of tax determined to be due for the reporting period.

(2) Use this time line for the following situations only:

3/15 4/15 5/15 6/15 7/15 8/15
| | \/ \/
V Due Pen. Add'l @ 10%
Extension Timely Date (6/16-7/15) Pen.
Requested with (7/16-8/14)
100% of Last Years
Tax or 90% of Tax
Reported on 6/15.

Conditions:
Extension timely requested AND Payment of 100% of previous years tax or 90% of
tax determined to be due on 6/15. Under these conditions, June 15 will always be
the due date for any additional taxes.

(3) Use a "split" time line when the following conditions occur:

3/15 4/15 5/15 6/15 7/15 8/15
| \/ \/ | | \/ \/
5% Pen. 5% Add'l |Int. @ 10% | 5% Pen. 5% Add'l | Int. @ 10%
| (3/16-4/14) Pen. | (6/16-7/15) Pen.
| (4/15-5/14) | (7/16-8/14)
V V
Extension Timely Due
Requested With Date For
AT Least $68 but 10% of Total

P & I Computed on this amount from 3/17 $1800

3/18 5% Penalty $90.00
4/17 5% Penalty 63 $90.00
5/17 10% Interest from 5/17 to 7/18-( ------ x 1800 x .1) $31.07
365

10% of Total Tax Due (P & I computed from 6/16) $ 1200
6/17 5% Penalty $60.00
7/17 5% Penalty $60.00
No Interest since tax paid before 8/16 $-0-

Total Penalty and Interest Due $331.07