If your company is facing a substantial Texas sales tax assessment, what should you do? Should you fight the Texas Comptroller’s determination of your company’s sales tax liability? Or, should you target a settlement that mitigates your company’s financial responsibility? As you might expect, the short answer is, “It depends.” […]
Category: State and Local Taxes
The Texas Comptroller’s Office has substantial authority to enforce businesses’ state sales tax obligations. However, one thing it cannot do is shut down a business over a sales tax debt. With that said, the Comptroller’s Office can pursue various means of enforcement that can make it difficult for businesses to […]
Companies that sell taxable goods and services in Texas are required to collect and remit sales tax in compliance with the Texas Tax Code. Those who fail to comply with their state sales tax obligations can face liability for back taxes, interest, and penalties. For companies that have failed to […]
The Texas Comptroller’s Office has various means of enforcing companies’ state sales tax liability. Two of its most effective means of enforcement are bank levies and asset seizures. The Comptroller’s Office can pursue these enforcement mechanisms within weeks of declaring a delinquency, and when a bank or another third party […]
The Texas Comptroller’s Office uses sales tax liens to enforce companies’ obligation to pay what they owe. Once the Texas Comptroller assesses a company’s sales tax liability, the company is obligated to pay, and penalties begin accruing after 30 days. Interest begins to accrue after 60 days as well. While […]
Adverse Texas sales tax decisions can leave both in-state and out-of-state businesses facing substantial and unexpected liability for taxes, interest, and penalties. While this liability will be warranted in some cases, it is not unusual for appeals to be warranted as well. If your business is facing an adverse Texas […]
Businesses that are unable to achieve favorable resolutions of sales tax disputes with the Texas Comptroller’s Office have the right to challenge their liability in court. Businesses can seek judicial review of their Texas sales tax assessments on various grounds, and, when warranted, seeking judicial review can be an effective […]
Refund suits and protests are the two primary means for businesses to dispute their Texas sales tax liability outside of the administrative appeals process. Substantively, these actions are largely similar, with the main difference being timing. Businesses can file refund suits when they discover that they have previously overpaid their […]
Businesses that disagree with the Texas Comptroller’s determination of their state sales tax liability have the right to go to court if they are unable to secure a satisfactory resolution through the administrative appeals process. Businesses also have the option to waive their right to an administrative hearing and proceed […]
For businesses that are facing substantial sales tax liability following scrutiny from the Texas Comptroller’s Office, the first step toward challenging this liability may be to file a formal protest. While many Texas sales tax protests are successful, many also fail. Oftentimes, Texas sales tax protests fail when they shouldn’t. […]