Could a company using a thirteen-period fiscal calendar file Texas sales-tax returns on that accounting cycle?

Plain-English summary

COMPANY A asked to continue filing Texas sales-tax returns using a thirteen-period accounting calendar.

The Comptroller said the Tax Code required calendar-basis reports but permitted the company's fiscal-calendar data to be assigned to calendar returns. Returns remained due on the 20th, subject only to weekends, holidays, and similar nonworking days, and the Comptroller's computer accepted only 12 monthly returns per calendar year.

The company had to follow the enclosed period-to-return schedule and leave the preprinted report-period ending dates unchanged; changing those dates would prevent processing. The letter then assigned each of the company's 1991-1992 accounting periods to a monthly return and due date.

The prose day-range instructions contain apparent inconsistencies with their own examples—for example, the second range begins with "22th" but its example covers June 11 through June 30. The official schedule, not a reconstructed rule from those lines, was the operative instruction given to this taxpayer.

What this means for you

Texas did not accept a thirteenth monthly return. It allowed the taxpayer's fiscal data to be fitted into the state's 12-return calendar system under a specific schedule.

Common questions

Could the company file 13 Texas monthly returns? No. The Comptroller's system accepted only 12.

Was the normal due date extended for the fiscal calendar? No.

Could the company change preprinted report-period dates? No; the letter said altered dates would not process.

Did weekends and holidays affect due dates? Yes. A due date falling on a Saturday, Sunday, or legal holiday moved to the first working day afterward.

Should the historical prose ranges be generalized into a current filing rule? No. They contain internal inconsistencies and accompanied a taxpayer-specific schedule.

Citations and references

• The letter referred generally to the Texas Tax Code but did not identify a numbered provision.
• Enclosed 1991-1992 accounting calendar — assigns 12 fiscal periods to monthly Texas returns and due dates

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9105L1153A10

Original ruling text

May 20, 1991

Dear **:

I am responding to your letter requesting permission for COMPANY
A to continue filing sales tax returns based on your accounting
calendar.

The Texas Tax Code requires reports to be filed on a calendar
basis; however, it is permissible to file based on your fiscal
calendar. The returns are due on the 20th day of the month and
that due date cannot be extended except by weekends, holidays,
and other such nonworking days. The filing procedure required
by Texas is outlined below:

-- For accounting periods ending the first through the 20th
day of the month the due date will be the 20th of that month
(i.e., if the accounting period ends April 1 through April 10,
the data is to be reported on the March return due April 20).

-- For accounting periods ending on the 22th through the
last day of the month, the due date will be the 20th of the next
month (i.e., if the accounting period ends June 11 through June
30, the data is to be reported on the June return due July 20).

Also, our computer will accept only 12 monthly returns in a
calendar year. I have indicated the respective due dates on the
schedule which I have enclosed for your records. Please do not
change the preprinted report period ending dates on the returns.
If the dates are changed, the returns will not process. The due
date is shown on each return.

This opinion is based on the facts presented; any additional or
different facts may change the opinion. You may also write to
Tax Administration Division, Comptroller of Public Accounts.

Sincerely,

Tax Administration Division

1991 ACCOUNTING CALENDAR: (01) 06/02/91 through 07/06/91
RETURN IDENTIFIED FOR: June
DUE DATE: 07/20/91

1991 ACCOUNTING CALENDAR: (02) 07/07/91 through 08/03/91
RETURN IDENTIFIED FOR: July
DUE DATE: 08/20/91

1991 ACCOUNTING CALENDAR: (03) 08/04/91 through 08/31/91
RETURN IDENTIFIED FOR: August
DUE DATE: 09/20/91

1991 ACCOUNTING CALENDAR: (04) 09/01/91 through 10/05/91
RETURN IDENTIFIED FOR: September
DUE DATE: 10/20/91

1991 ACCOUNTING CALENDAR: (05) 10/06/91 through 11/02/91
RETURN IDENTIFIED FOR: October
DUE DATE: 11/20/91

1991 ACCOUNTING CALENDAR: (06) 11/03/91 through 11/30/91
RETURN IDENTIFIED FOR: November
DUE DATE: 12/20/91

1991 ACCOUNTING CALENDAR: (07) 12/01/91 through 01/04/92
RETURN IDENTIFIED FOR: December
DUE DATE: 01/20/92

1991 ACCOUNTING CALENDAR: (08) 01/05/92 through 02/01/92
RETURN IDENTIFIED FOR: January
DUE DATE: 02/20/92

1991 ACCOUNTING CALENDAR: (09) 02/02/92 through 02/29/92
RETURN IDENTIFIED FOR: February
DUE DATE: 03/20/92

1991 ACCOUNTING CALENDAR: (10) 03/01/92 through 04/04/92
RETURN IDENTIFIED FOR: March
DUE DATE: 04/20/92

1991 ACCOUNTING CALENDAR: (11) 04/05/92 through 05/02/92
RETURN IDENTIFIED FOR: April
DUE DATE: 05/20/92

1991 ACCOUNTING CALENDAR: (12) 05/03/92 through 06/06/92
RETURN IDENTIFIED FOR: May
DUE DATE: 06/02/92

Your company's fiscal calendar has been adjusted to concur with
the required return filing for Texas which is based on the
calendar year.

When the due date falls on a Saturday, Sunday, or legal holiday,
the report is due the first working day thereafter. The correct
due date is preprinted on each return.