A taxpayer was audited, paid the resulting deficiency determination in full, then submitted additional documentation within 60 days that got some items amended. There are still other items the taxpayer believes are exempt but hasn't yet documented to the auditor. How much time does the taxpayer have to present that additional documentation without losing the ability to claim a refund — is it six months from the audit's final date under Tax Code Section 111.104, or does the normal four-year statute apply?

Plain-English summary

A taxpayer was audited for a multi-year period, received a Texas Notification of Audit Results (a deficiency determination), and paid it in full. Within 30 days, the taxpayer told the state it had additional documentation, and by day 60 had shown that documentation to the auditor, leading to an amended audit. But there were still OTHER items in the audit the taxpayer believed were exempt, for which supporting documentation had not yet been shown to the auditor. The taxpayer's representative asked: how much time is available to present that remaining documentation without losing the ability to claim a refund — specifically, does Tax Code Section 111.104 give six months from the audit's final date (October 9, 1997 in this case) to disagree and submit more documentation?

The Comptroller confirmed Section 111.104(b) does allow a written refund claim within six months of the date the deficiency determination becomes final — but with an important limit, per Administrative Hearing #13,102: that six-month window only tolls (extends) the limitations period for the SPECIFIC TRANSACTIONS that were already part of the original audit. For any transactions that were NOT set up in the audit, or if the six-month window has already expired, the taxpayer falls back to the ordinary FOUR-YEAR statute of limitations rather than getting the extended six-month treatment.

What this means for you

Taxpayers who paid an audit deficiency and later find additional exemption documentation

Act promptly and distinguish between items already in your audit versus items that weren't. The six-month post-audit refund window under Section 111.104(b) only extends the clock for items the AUDITOR ALREADY EXAMINED — new items outside the audit's scope revert to the regular four-year statute, which may already be running out depending on the transaction dates.

Businesses managing multi-year audit disputes

If you discover exemption support for line items late in the process, check carefully whether each item was actually "set up" (included) in the original audit. This distinction can determine whether you get the extended six-month window or only the standard four-year period — and missing that distinction risks losing a valid refund claim.

Accountants and tax professionals handling post-audit refund claims

This letter is a useful citation for the scope limit on Section 111.104(b)'s six-month tolling provision — cite Hearing #13,102 when advising clients that the extended window is transaction-specific, not audit-wide.

Common questions

Q: How long do I have to file a refund claim after my audit's deficiency determination becomes final?
A: Six months from that final date, under Tax Code Section 111.104(b) — but only for transactions already included in the audit.

Q: What if I want to claim a refund on an item that wasn't part of my original audit?
A: The normal four-year statute of limitations applies to those items, not the shorter six-month window.

Q: What happens if the six-month window has already passed?
A: The four-year statute applies instead, for any items not already covered by the audit-specific tolling.

Q: Can I rely on this letter for my own refund claim?
A: No. It's based on the facts presented, and the letter notes other facts, though similar, may provide a different result.

Citations and references

• Tex. Tax Code § 111.104(b) (six-month refund claim window from a final deficiency determination)
• Comptroller's Administrative Hearing No. 13,102 (limits the six-month tolling to transactions already set up in the audit)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9803171L

Original ruling text

March 4, 1998

Dear ***:

This is in response to your request for a ruling on the application of the
statute of limitations to a refund request. Your client *** (CLIENT) was
audited for the periods 9301 through 9512. CLIENT received a Texas
Notification of Audit Results which it paid in full. Within 30 days of the
notice, CLIENT wrote back to the State and informed them that they had
additional documentation. The documentation was shown to the auditor by the
60th day and the audit will be amended accordingly.

It has come to your attention that there are still certain items remaining in
the audit that the taxpayer can prove to be exempt. This documentation has
not yet been shown to the auditor to support CLIENT's position.

Your question is up to what date can CLIENT present the additional
documentation to the State without losing any statute? Per Tax Code 111.104,
does CLIENT have six months from the Notification of Audit Results final date
(10-09-97) to disagree with the audit and present additional documentation?

Response: Subsection (b) of Tax Code 111.104, allows you to file a written
claim for a tax refund within six months from the date the deficiency
determination (Notification of Audit Results) become final. However, the
statute is only tolled for the transactions set up in the audit (see Hearing

13,102, edited copy enclosed). For transactions not set up in the audit, or

if the six months has passed, the normal four year statute applies.

This opinion is based on the facts presented. Other facts though similar may
provide a different result.

I hope this information answers your questions. If you need additional
information, please call me toll-free at 1-800-531-5441, extension 3-4502. The
direct line is 512/463-4502. You may also write to Tax Policy Division,
Comptroller of Public Accounts. You may also e-mail our tax help section at:

Sincerely,

Gilbert Zamora
Tax Policy Division