The State of TEXAS is telling my husband and I we owe them over a $1,000 for attending a $0 sales event in San Antonio. Have any of you ever been required to file a "FRANCHISE entity tax form?
We did a show in San Antonio a couple of years ago and I applied for what I thought was a one-time sales and tax permit. They said they determined we needed a "franchise." I couldn't see why, but they said we could get a $500 a day penalty if we sold in the state. So I filled in the form and sent it in. We did the show, $0 sales -- which I reported. Then I kept getting calls about not filing out the quarterly franchise forms. I FINALLY got to talk to someone who said he closed out the franchise. Yesterday my husband got a phone call saying we owed the state something over $1,000. (He freaked and didn't get the exact amount)
Anyone else have any experiences like this? We spent money in Texas, didn't sell anything and they want this kind of cash? Its a holdup! We need help!
Comments
I don't have an answer for you but I do have a very good tax lady in the Fort Worth area that I'm sure would give you the correct info on this. I doubt she would even charge you simply for a phone conversation for some "straight" info. If you'd like, call Michele Beck, CPA PC at 817-683-7080 and just tell her I suggested you call. She's been doing my taxes for years and I haven't gone to jail yet! I'll send her a short email and tell her you might be calling. Good luck.
Don
16. What are the criteria for filing no tax due reports?
A taxable entity, including a combined group, qualifies to file a No Tax Due Report if it meets one of the criteria below:
* has zero Texas receipts,
* qualifies as a passive entity under TTC 171.0003,
* is a real estate investment trust (REIT) that meets the qualifications specified in TTC 171.0002(c)(4), or
* has total revenue, annualized per 12 month period on which the tax is based, below the no-tax-due threshold amount defined below.
The no-tax-due threshold is:
* $300,000 or less for franchise tax reports originally due on or after January 1, 2008 and before January 1, 2010.
* $1,000,000 or less for franchise tax reports originally due on or after January 1, 2010 and before January 1, 2012.
* $600,000 or less for franchise tax reports originally due on or after January 1, 2012.
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