Texas Comptroller Protest

TEXAS COMPTROLLER TAX PROTEST

STATE TAX ADMINISTRATIVE HEARING REQUEST

TAXPAYER INFORMATION

Taxpayer Name: [FULL LEGAL NAME OR BUSINESS NAME]

Texas Taxpayer ID Number: [TEXAS ID]

Federal EIN (if applicable): [EIN]

Current Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Daytime Telephone: [PHONE NUMBER]

Email Address: [EMAIL]

NAICS Code (if business): [CODE]

Audit/Assessment Number: [NUMBER]

ASSESSMENT INFORMATION

Type of Tax:
☐ Sales and Use Tax
☐ Franchise Tax
☐ Motor Fuels Tax
☐ Hotel Occupancy Tax
☐ Mixed Beverage Tax
☐ Insurance Premium Tax
☐ Other: [DESCRIBE]

Assessment/Determination Date: [DATE]

Audit Period: [FROM DATE] to [TO DATE]

Tax Assessed: $[AMOUNT]

Penalty: $[AMOUNT]

Interest: $[AMOUNT]

Total Assessment: $[AMOUNT]

COVER LETTER

[DATE]

Texas Comptroller of Public Accounts
Enforcement Division
P.O. Box 13528
Austin, TX 78711-3528

Via Certified Mail No.: [TRACKING NUMBER]

Re: Protest of Tax Assessment
Taxpayer: [TAXPAYER NAME]
Texas Taxpayer ID: [NUMBER]
Assessment Number: [NUMBER]
Tax Type: [TAX TYPE]
Audit Period: [PERIOD]

Dear Comptroller:

I hereby protest the tax assessment referenced above and request a redetermination hearing pursuant to Texas Tax Code § 111.009. This protest is filed within 60 days of the assessment date as required by law.

SECTION 1: PROTEST DEADLINE VERIFICATION

Assessment Date: [DATE]

60-Day Deadline: [DATE]

Date of This Protest: [DATE]

☐ This protest is timely filed within 60 days of the assessment date

SECTION 2: ITEMS PROTESTED

Select all items being protested:

☐ Tax amount
☐ Penalty assessment
☐ Interest calculation
☐ Audit methodology
☐ Nexus determination
☐ Exemption denial
☐ Credit denial
☐ Other: [DESCRIBE]

Detailed Description of Disputed Items:

SECTION 3: STATEMENT OF FACTS

Provide a detailed statement of facts supporting your protest:

1. Background of Business/Taxpayer:
   [DESCRIBE]

2. Transactions at Issue:
   [DESCRIBE THE SPECIFIC TRANSACTIONS OR ACTIVITIES THAT GAVE RISE TO THE ASSESSMENT]

3. Audit Process:
   [DESCRIBE YOUR INTERACTION WITH THE AUDITOR AND ANY ISSUES THAT AROSE]

4. Supporting Facts:
   [PROVIDE ADDITIONAL FACTS THAT SUPPORT YOUR POSITION]

SECTION 4: LEGAL ARGUMENTS

Texas Tax Code Sections:
[CITE APPLICABLE TAX CODE SECTIONS]

Texas Administrative Code:
[CITE APPLICABLE 34 TAC SECTIONS]

Comptroller Rules and Policies:
[CITE APPLICABLE RULES]

Case Law:
[CITE RELEVANT TEXAS CASES]

Argument:
[EXPLAIN WHY THE ASSESSMENT IS INCORRECT BASED ON THE LAW AND FACTS]

SECTION 5: SALES AND USE TAX ISSUES (IF APPLICABLE)

If protesting sales/use tax assessment:

Nature of Dispute:
☐ Taxability of product/service
☐ Exemption certificate validity
☐ Resale certificate issues
☐ Use tax on purchases
☐ Audit sampling methodology
☐ Bad debt credit
☐ Other: [DESCRIBE]

Specific Sales Tax Issues:

Issue 1: [DESCRIBE]

• Comptroller's position: [EXPLAIN]
• Taxpayer's position: [EXPLAIN]
• Legal authority: [CITE]

Issue 2: [DESCRIBE]

• Comptroller's position: [EXPLAIN]
• Taxpayer's position: [EXPLAIN]
• Legal authority: [CITE]

SECTION 6: FRANCHISE TAX ISSUES (IF APPLICABLE)

If protesting franchise tax assessment:

Nature of Dispute:
☐ Total revenue calculation
☐ Apportionment
☐ Margin calculation method
☐ Cost of goods sold
☐ Compensation deduction
☐ Combined reporting
☐ Nexus
☐ Other: [DESCRIBE]

Specific Franchise Tax Issues:

[DESCRIBE EACH ISSUE IN DETAIL]

SECTION 7: NEXUS PROTEST (IF APPLICABLE)

If protesting Texas nexus determination:

Comptroller's Nexus Theory:
☐ Physical presence
☐ Economic nexus
☐ Attributional nexus
☐ Agency nexus
☐ Other: [DESCRIBE]

Taxpayer's Position on Nexus:
[EXPLAIN WHY TAXPAYER DOES NOT HAVE NEXUS IN TEXAS]

Relevant Factors:
☐ No physical presence in Texas
☐ No employees in Texas
☐ No property in Texas
☐ No inventory in Texas
☐ Sales below economic nexus threshold
☐ Other: [DESCRIBE]

SECTION 8: PENALTY WAIVER REQUEST

If requesting penalty abatement:

☐ I request waiver of penalties

Basis for Penalty Waiver:

☐ Reasonable Cause
[EXPLAIN THE CIRCUMSTANCES THAT CONSTITUTE REASONABLE CAUSE]

☐ Good Faith Compliance Effort
[EXPLAIN COMPLIANCE EFFORTS]

☐ Reliance on Professional Advice
[EXPLAIN]

☐ First-Time Offense
[EXPLAIN COMPLIANCE HISTORY]

☐ Comptroller Error or Delay
[EXPLAIN]

☐ Other:
[EXPLAIN]

SECTION 9: ALTERNATIVE DISPUTE RESOLUTION

The Comptroller offers Alternative Dispute Resolution (ADR):

☐ I request participation in mediation before formal hearing
☐ I do not request ADR at this time

SECTION 10: HEARING REQUEST

Type of Hearing Requested:

☐ Informal Hearing with Comptroller's Hearings Division

• Generally for smaller disputes
• Less formal process
• Decision by Comptroller

☐ Formal Hearing at State Office of Administrative Hearings (SOAH)

• For larger or more complex disputes
• Formal evidentiary hearing
• Administrative Law Judge presides
• Appeal to district court available

Preferred Hearing Location:
☐ Austin
☐ Houston
☐ Dallas
☐ San Antonio
☐ Other: [LOCATION]

SECTION 11: DOCUMENTATION ATTACHED

Checklist of Supporting Documents:

☐ Copy of assessment/audit notification
☐ Copy of audit report
☐ Tax returns for periods at issue
☐ Exemption certificates
☐ Resale certificates
☐ Business records supporting position
☐ Contracts/agreements
☐ Invoices/receipts
☐ Correspondence with auditor
☐ Power of Attorney
☐ Other: [DESCRIBE]

Document Index:

SECTION 12: PAYMENT OPTIONS

While your protest is pending:

☐ Full Payment Under Protest

• Stops interest from accruing
• Eligible for refund if protest is successful
• Amount paid: $[AMOUNT]

☐ Partial Payment Under Protest

• Amount paid: $[AMOUNT]
• Remaining balance: $[AMOUNT]

☐ No Payment at This Time

• Interest continues to accrue
• Collection may be stayed during protest

☐ Payment Plan Request

• Proposed monthly payment: $[AMOUNT]

SECTION 13: TAXPAYER CERTIFICATION

I declare under penalty of perjury that the statements made in this protest are true, correct, and complete to the best of my knowledge and belief.

Taxpayer/Authorized Representative Signature: ___________________________________

Printed Name: [NAME]

Title (if business): [TITLE]

Date: [DATE]

SECTION 14: REPRESENTATIVE INFORMATION (IF APPLICABLE)

Representative Name: [NAME]

Firm Name: [FIRM]

Address:
[ADDRESS]

Telephone: [PHONE]

Fax: [FAX]

Email: [EMAIL]

Texas Bar Number / CPA License: [NUMBER]

☐ Power of Attorney (Form 85-105) is attached

MAILING INSTRUCTIONS

Mail Protest To:

Texas Comptroller of Public Accounts
Enforcement Division
P.O. Box 13528
Austin, TX 78711-3528

For Overnight Delivery:
Texas Comptroller of Public Accounts
Enforcement Division
111 E. 17th Street
Austin, TX 78774

Send via Certified Mail with Return Receipt Requested

Certified Mail Number: ______________________
Date Mailed: ______________________

IMPORTANT DEADLINES

HEARING PROCESS

1. Informal Review:

• Comptroller's Hearings Section reviews protest
• May request additional information
• Issues preliminary decision

2. Formal Hearing (if requested):

• Referred to SOAH
• Formal evidentiary hearing
• ALJ issues proposal for decision
• Comptroller issues final decision

3. Judicial Review:

• File suit in Travis County District Court
• Must file within 30 days of final decision
• Trial de novo (new trial)

PROPERTY TAX PROTEST NOTE

For Property Tax Protests:

Property tax protests are filed with your local Appraisal Review Board (ARB), not the Comptroller.

Use Form 50-132, Property Owner's Notice of Protest, available at:
comptroller.texas.gov/taxes/property-tax/forms/

Property Tax Protest Deadline: Generally May 15 or 30 days from notice of appraised value, whichever is later.

CONTACT INFORMATION

Texas Comptroller of Public Accounts:

• Main Phone: (800) 252-5555
• Enforcement Division: (512) 463-4600
• Website: comptroller.texas.gov

State Office of Administrative Hearings (SOAH):

• Phone: (512) 475-4993
• Website: soah.texas.gov

IMPORTANT NOTES

1. Interest Accrual: Interest continues to accrue during the protest process unless you pay the disputed amount.

2. Collection Activities: Filing a timely protest generally stays collection activities.

3. Statute of Limitations: The Comptroller generally has 4 years to assess additional tax.

4. Document Everything: Keep copies of all documents submitted and received.

5. Professional Advice: Consider consulting a tax attorney or CPA for complex disputes.

This template is provided for informational purposes and should be reviewed by qualified tax counsel before submission to the Comptroller.