Could a taxpayer file monthly Texas sales-and-use-tax returns using a 13-period accounting calendar, and how were period-end dates assigned to returns?

Plain-English summary

The Comptroller allowed the taxpayer to base monthly sales-and-use-tax returns on a 13-period accounting year. An accounting period ending on the first through tenth day of a month was reported on the prior month's return due on the twentieth of that same month. For example, a period ending April 1-10 went on the March return due April 20.

A period ending on the eleventh through last day of a month was reported on that month's return due on the twentieth of the next month. For example, a period ending June 11-30 went on the June return due July 20.

Because the Comptroller's computer accepted only 12 monthly returns, two accounting periods had to be combined on one return as marked on the taxpayer's schedule. The taxpayer was told not to change the preprinted report-period ending dates because altered returns would not process.

What this means for you

The 13-period calendar was permitted only within the Comptroller's 12-return processing structure. Period-end day determined the assigned monthly return and due date, and one filing had to contain two accounting periods.

Common questions

Could the taxpayer use 13 accounting periods? Yes. Could it file 13 monthly returns? No; two periods had to be combined. Could it edit the preprinted period-ending dates? No. When was a period ending on the tenth reported? On the prior month's return due that month's twentieth.

Citations and references

• The letter does not identify a numbered statute or administrative rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9110L1153B07

Original ruling text

October 23, 1991

Dear *****:

Thank you for your letter requesting permission to file sales and
use tax returns for account *** based on a 13-period
accounting system.

The monthly tax returns can be filed based on a 13-period calendar
year using the following formula:

For accounting periods ending the 1st through the 10th day of
a month, the due date will be the 20th of that month. (e.g.,
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 11th through the last day
of the month, the due date will be the 20th of the next month.
(e.g., if the accounting period ends June 11 through June 30,
the data is to be reported on the June return due July 20)

Because our computer will accept only twelve monthly returns in a
calendar year, two of your accounting periods will have to be
combined on one return as I indicated on your schedule. Please do
not change the preprinted report period ending dates as the returns
will not process.

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

Please feel free to contact me if you have any additional questions.
You may write me, call toll free 1-800-252-5555, ext. 34685, from
anywhere in the United States or phone 512/463-4685.

Sincerely,

Julie Pesl
Tax Administration Division