The Texas Comptroller just released "Tips on Requesting an Extension of Time to File Your 2009 Franchise Tax Report." You can click on the following link to access the publication:
http://www.window.state.tx.us/taxinfo/franchise/ft_extension_tips.html
The tips are very helpful and highlight areas or items that have caused confusion and taxpayers to receive notices over the past six months.
For your convenience, I have reproduced the "tips" provided by the Comptroller:
Single Entities
1. Must complete the Extension Request (form 05-164), include the appropriate payment, and; mail it on or before the due date;
2. Single entities required to pay electronically using TEXNET will establish their extension with their timely extension payment on TEXNET and do not need to submit Form 05-164.
Combined Groups
1. General Rule: A combined group requesting an extension must file both of the following forms with the appropriate payment on or before the due date:
Extension Request (form 05-164), and Extension Affiliate List (form 05-165)
The affiliate list tells Texas which entities will be reported as a part of the combined group, so Texas will not expect a separate report from those affiliates. Filing the extension request without the affiliate list, or the list without the extension request, will not establish an extension for the group.
2. Exception to General Rule:
A combined group required to pay electronically using TEXNET will make an extension payment using TEXNET. In this case, the Extension Request (form 05-164) does not have to be submitted. The Extension Affiliate List (form 05-165) must still be filed.
A combined group is required to electronically transmit payments if any member of the group receives notice that it is required to make payment electronically.
Affiliate List
The affiliate list requires you to report three pieces of information for each affiliate:
the affiliate’s legal name, the affiliate's Texas taxpayer number, and whether or not this affiliate has nexus in Texas.
If the affiliate does not have a Texas taxpayer number, enter the entity’s FEIN. Do not use the entity’s file number registered with the Texas Secretary of State or the reporting entity’s taxpayer number. If the affiliate does not have a Texas taxpayer number or an FEIN, leave the field blank.
The nexus field is worded as "Blacken circle if affiliate does NOT have nexus in Texas." Blacken the circle for the affiliates that do not have nexus in Texas.
Use Comptroller forms to request an extension and submit the affiliate list. Texas will not accept this data in Excel spreadsheets or other formats.
Send in the affiliate list only one time with the original extension request. Do not submit the affiliate list with a second extension request, or when you file the report and affiliate schedule.
Affiliate List vs. Affiliate Schedule
Before filing the report and the affiliate schedule for the August 17 or November 16 extended due date, review the affiliate list submitted with the extension request. The reporting entity must be included on the Affiliate Schedule.
If an entity was included on the affiliate list but not on the affiliate schedule, the combined group will not be in good standing. If an entity was included on the affiliate list in error, notify the Comptroller in writing explaining the error and telling Texas how the entity will report – separately, or as a part of another combined group.
If you have any questions, please contact me at leveragesalt@earthlink.net.
