Could a company use a rubber-stamped signature on its Texas sales and use tax returns?

Plain-English summary

Texas law required a sales and use tax report to be signed by the person required to file it or that person's authorized agent. The Comptroller said its records showed no prior written approval or denial specifically addressing rubber-stamped signatures.

The agency nevertheless processed returns as received, including returns that were unsigned, photocopied, or rubber-stamped. A rubber stamp represented that the named person was the taxpayer or duly authorized agent, accepted responsibility for the information, and declared it true and correct to the best of that person's knowledge and belief.

Processing did not mean the Comptroller accepted the reported data, and it did not shield the return from audit or another statutorily permitted verification.

Common questions

Would the Comptroller process a rubber-stamped return? Yes, under the practice described in this 1989 letter.

Did the stamp eliminate the signer's responsibility? No. It acknowledged responsibility for the return's information.

Did processing mean the agency accepted the data as correct? No.

Could the return still be audited? Yes.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8908L0952G07

Original ruling text

August 25, 1989

Dear ***:

I am responding to your request for permission to sign your sales
and use tax returns using a rubber stamp. I apologize for the
long delay in responding to this request.

As we discussed in our telephone conversation, our records do not
indicate that this agency has ever given written permission to any
entity to sign the sales and use tax returns using a rubber stamp.
Nor do our records indicate that we have ever denied permission to
use a rubber stamp to sign the sales and use tax returns. This
letter is intended to set out the guidelines requiring the
"signature" on the return and to explain that any signature
whether original, photo-copied, or rubber-stamped is an acknow-
ledgment of the responsibility for the information contained in
the return.

The requirement for a signature on the sales and use tax return is
found in the sales tax law, Chapter 151.406(d) which states, "A"
tax report must be signed by the person required to file it or by
the person's authorized agent." Instructions for filing returns
are included in several brochures issued by this agency. These
instructions are restated for your information and apply to
regularly filed reports and reports filed through the tape report-
ing system.

"The report must be signed by the taxpayer or his agent.
Enter the title and business telephone number of the person
signing the report and the date it is signed."

"The person signing the report should be available during
regular working hours at the telephone number provided and
be able to answer questions which may arise in processing
your tape report."

"The identification section must be signed. The person who
signs the form should include a title and a telephone number
and should be prepared to answer any questions that may
arise."

The identification section/signature section of the return itself
provides that the person signing the return may be the "taxpayer
or duly authorized agent" and the signature space is located below
this statement, "I declare that the information in this document
and any attachments is true and correct to the best of my
knowledge and belief."

Chapter 151.406 and 151.407 provide the Comptroller with authority
to require information and to prescribe the form in which the
sales and use tax data is to be filed with this agency. Although
these sections specifically require a signed return, it has been
the position of this agency to process a return in the manner it
is received from the taxpayer (seller or purchaser). The fact
that the return is received and processed by this agency does not
signify that the agency accepts the data provided therein. The
data contained in every return received and processed by this
agency whether signed, unsigned, rubber stamped, photocopied, etc.
is subject to verification by this agency through audit or by any
other means allowed by statute.

The use of a rubber-stamped signature by your company or any other
company on a sales and use tax return indicates that the data
contained in the return is "...true and correct...", that the
person whose signature is rubber stamped is the "duly authorized
agent or the taxpayer", and is the one responsible for the data
and may be contacted regarding the data. It must also be under-
stood that the processing of such a return does not preclude the
return from any verification that this agency may require.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion may change.

You may also write to Tax Correspondence, Comptroller of Public
Accounts.

Sincerely,

Tax Policy Division
Tax Correspondence