Tax Alert: Texas Tax Amnesty Program Provides Relief from Penalties and Interest

The Texas Tax Amnesty Program applies to taxes such as sales and use tax and franchise (margin) taxes due for prior years. From May 1 through June 29, 2018, the Texas Comptroller of Public Accounts will accept original or amended returns and payments and waive penalties and interest on underreported taxes.

Who is eligible to participate in the Amnesty?

  • Taxpayers who did not file a required return originally due before January 1, 2018.
  • Taxpayers who underreported taxes or fees due for any reason.

What types of entities pay the franchise tax?

  • Corporations including S Corporations, LLCs, Partnerships, some Trusts and Sole proprietors (other than single member LLCs) may pay an entity level tax even if their only contact in Texas is soliciting orders.

Why should I consider participating in the Amnesty?

  • Failure to comply will require payment of all taxes, plus fees, penalties and interest.


Which businesses and taxes are not covered by the Amnesty?

  • Businesses notified that tax years are or will be subject to examination by Texas.
  • Taxes not administered by the Texas Comptroller such as local motor vehicle taxes, IFTA taxes, PUC gross receipts assessments or unclaimed property payments.


Since Texas does not have a personal income tax, they rely heavily on collections from business taxes. If you think your company could benefit from the Texas Amnesty Program and wiping the slate clean, reach out to Sax’s Tax Practice or your advisor for more information and guidance.

Peggy Tilles, JD, LLM is a Senior Tax Manager at Sax and is the firm’s in-house advisor on Sales and Use Taxes and state tax nexus. She has over 25 years of accounting, government and corporate experience. At Sax, she advises clients on multi-state tax matters including tax research and proactive tax planning and directs tax credit studies. She can be reached at [email protected].

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