When it comes to Texas sales tax, inability to pay is not an excuse for noncompliance. The Texas Comptroller’s Office expects companies to properly collect and remit sales tax, and it uses liens, levies, asset seizures, and other tools to enforce compliance when necessary. So, what if your company cannot […]
For companies facing substantial Texas sales tax liability following an unfavorable audit or an unsuccessful appeal, paying the full amount due is not necessarily the only option available. Companies that have independently identified Texas sales tax delinquencies may also have options to pay less than the full amount they owe. […]
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.” […]
Hotels face unique challenges in state and local tax compliance in Texas. While hotels must pay state and local hotel occupancy taxes, they must also pay state and local sales taxes. Noncompliance with either of these obligations can trigger interest and penalties; and, in the event of an audit, targeted […]
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 […]