When are Texas Business Taxes Due? A Comprehensive Guide

Tax season can be a stressful time for business owners in Texas. Every year, businesses must file their Annual Franchise Tax Report by May 15th. If you miss the deadline, you can request an extension by filing Texas Form 05-164, which will extend the due date to August 15th. If you are unable to file your report by the extended due date, you can request a second extension by re-filing Texas Form 05-064 by August 15th, which will extend your final filing deadline to November 15th.

If the IRS sends a notice of late payment or filing penalties to an affected taxpayer (despite the automatic extension), the IRS recommends contacting the IRS at the appropriate number that will appear on the notice. If you have any questions about tax deadlines, tax deductions, or navigating tax law updates, contact Lynn Butler, Doug Jones, Albert Lin, or your Husch Blackwell attorney. Texas Comptroller annually applies Texas Franchise Tax to all taxable entities doing business in the state. The tax is based on the entity's margin and can be calculated in a number of different ways.

Every business in Texas must file an Annual Franchise Tax Report by May 15th. Fourth Quarter Individual Estimated Tax Payments are due on January 15th. January 31st is the filing deadline for Forms 941 and 940. The IRS automatically provides filing and payment relief to any taxpayer with a registered IRS address located in the disaster area.

Such taxpayers must pay 90% of the tax due for the current year, or 100% of the declared tax due for the previous year, with the extension request. If you have questions about relief available in other states where Texas taxpayers can file a return, contact your Cherry Bekaert advisor or Cathie Stanton, state and local tax leader. Remember that filing Texas Form 05-164 only gives you an extension to file your annual Texas franchise tax report. Submit any estimated taxes you must pay with Texas Form 05-164 by May 15th to avoid potential late payment penalties. If you have questions about any additional relief that may be available to affected taxpayers, contact your Cherry Bekaert advisor. Leffingwell is a tax attorney in the firm's Tax Planning & Controversy, Estate Planning & Trusts and Real Estate practice groups.

Helping companies navigate financial due diligence commitments and domestic and international transactions. Sign up for news and ideas from Husch Blackwell. All Rights Reserved Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization.