Texas Sales Tax Guide
Chapter 7: How to manage late Texas sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Texas sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Texas sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Texas Comptroller of Public Accounts?
Filing a late sales tax return or making a late sales tax payment to the Texas Comptroller of Public Accounts may result in penalties and fines. A return due after October 11, 2011 but filed late will be assessed a $50 late filing penalty. The penalty is assessed regardless of whether any tax was due. Like other states, Texas requires all registered businesses to file zero-tax returns.
For the first 30-days the outstanding tax liability is late, a 5% penalty of the tax due is applied. Should the late period extend to a second 30-day period, the penalty increases to 10% of the tax due. Beyond 60-days, the penalty remains at 10% and interest is added to the outstanding balance.
Failure to rectify outstanding tax liability may result in the business being referred to a collection agency and assessed a collection fee.
As a reminder to file returns, the Texas Comptroller of Public Accounts may issue you a Notice of Tax/Fee Due. This notice is an estimate of the outstanding tax you owe. Should you again fail to file a Texas sales tax return, you may be assessed a penalty of an additional 10% on the outstanding tax liability.
If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Texas Comptroller of Public Accounts and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Texas sales and use tax liability.