Can a retailer use a Monday-to-Sunday 4-5-4 fiscal calendar (instead of the traditional Sunday-to-Saturday version) to report Texas sales tax for the year 2000, and what due dates apply?

Plain-English summary

A retailer notified the Comptroller of the specific 4-5-4 fiscal accounting calendar it planned to use for the year 2000 — a variant where months begin on a Monday and close on a Sunday, rather than the traditional retail 4-5-4 calendar that opens on a Sunday and closes on a Saturday. The letter laid out the exact start/end dates for all twelve 2000 months under this schedule and asked to report sales tax periods on that basis.

The Comptroller confirmed the modified 4-5-4 method is acceptable for reporting sales. Due dates are keyed to when each accounting period actually ends within the calendar month:

• If the accounting period ends on the 1st through the 10th of a month, the due date is the 20th of that same month (e.g., a period ending April 1-10 is reported on the March return, due April 20).
• If the accounting period ends on the 11th through the last day of a month, the due date is the 20th of the next month (e.g., a period ending June 11-30 is reported on the June return, due July 20).

What this means for you

Retailers and other businesses using non-calendar-month accounting

Texas doesn't require your sales tax reporting periods to line up with calendar months, and it will accept a modified 4-5-4 calendar (including a Monday-Sunday version) as long as you notify the Comptroller of your specific schedule. What matters for filing purposes is where each period's end-date falls within the month — that determines whether your due date is the 20th of the same month or the 20th of the following month.

Accountants and tax professionals

This letter is a useful, concrete confirmation of Texas's flexibility around fiscal 4-5-4 calendars for sales tax reporting, plus a clear statement of the due-date mechanics tied to period-end timing — helpful for retail clients transitioning to or adjusting a 4-5-4 fiscal calendar.

Common questions

Q: Can I use a non-traditional 4-5-4 fiscal calendar for Texas sales tax reporting?
A: Yes, as long as you notify the Comptroller of your specific calendar; the Comptroller confirmed a Monday-to-Sunday variant is acceptable in this letter.

Q: How do I know when my sales tax return is due under a 4-5-4 calendar?
A: It depends on when your accounting period ends within the month — the 1st-10th means due the 20th of the same month, and the 11th-through-end means due the 20th of the following month.

Citations and references

No specific Tax Code section or Comptroller rule number is quoted in this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9910758L

Original ruling text

October 7, 1999

Dear **:

This is in response to your letter informing us of your 4-5-4 Calendar for the
year 2000. Your months begin on a Monday and close on a Sunday, as opposed to a
traditional retail 4-5-4 calendar that opens on a Sunday and closes on
Saturday. The months will begin and end as follows:

Jan. 2000 -- 01/03/00 to 01/30/00
Feb. 2000 -- 01/31/00 to 02/27/00
Mar. 2000 -- 02/28/00 to 04/02/00
Apr. 2000 -- 04/03/00 to 04/30/00
May 2000 -- 05/01/00 to 05/28/00
Jun. 2000 -- 05/29/00 to 07/02/00
Jul. 2000 -- 07/03/00 to 07/30/00
Aug. 2000 -- 07/31/00 to 08/27/00
Sept. 2000 -- 08/28/00 to 10/01/00
Oct. 2000 -- 10/02/00 to 10/29/00
Nov. 2000 -- 10/30/00 to 11/26/00
Dec. 2000 -- 11/27/00 to 12/31/00

You indicated that you will report your sales tax periods to coincide with this
calendar.

Response: Your modified 4-5-4 method of accounting for your sales is
acceptable. Our requirements for reporting these sales is as follows:

• 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)

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