A franchise tax report supporting the amount of tax due (Form 05-158, Texas Franchise Tax Report (PDF), or Form 05-169, Texas Franchise Tax EZ Computation Report (PDF)) must be filed. Thus, when the amount of tax due shown on these forms is less than $1,000, the entity files the report but does not owe any tax.
What is a computation report?
The Computation Report displays the Employee wise Income Tax Computation details in the Form 16 format. Along with the Total Tax payable, it also displays the balance tax payable, tax already paid and tax amount to be deducted in the subsequent month.
How to file a franchise tax report in Texas?
If you are above the limit, you can choose to fill out and file the EZ Computation form or to take the time to fill out the Long Form. You can download the Franchise Tax Report forms from the Comptroller and submit them by mail to the following address:
When to file Texas franchise tax form 05-163?
Note that the reporting requirements are different for each scenario. If annualized total revenue is less than the no-tax-due threshold amount, then the taxable entity files Form 05-163, Texas Franchise Tax No Tax Due Report (PDF).
When does an entity become subject to franchise tax?
Entities that became subject to the tax during the previous calendar year and have a federal accounting year end date that is prior to the date the entity became subject to the tax, will use the day they became subject to the franchise tax as the accounting year end date on the first annual report. This results in a zero report.
When do you need To annualize a franchise tax report?
When the accounting period upon which the franchise tax report is based is more or less than 12 months, a taxable entity must annualize its total revenue to determine its eligibility for the no-tax-due threshold and qualification for the E-Z Computation.
