Texas Franchise Tax Extension Deadline 2023
Every year, businesses in Texas are required to pay a franchise tax. This tax is collected by the Texas Comptroller of Public Accounts and is a form of revenue for the state government. In order to avoid any penalties or interest charges, businesses need to make sure that they are paying their franchise tax on time.
For the 2023 tax year, the Texas franchise tax extension deadline is July 15, 2023. However, taxpayers who are unable to meet this deadline can apply for an extension. This can give them more time to file their tax returns and avoid any penalties. It’s important to note that an extension of time to file does not grant an extension of time to pay.
The Texas franchise tax is a tax paid by all business entities that are organized in Texas or registered to do business in the state. This includes partnerships, corporations, LLCs, and sole proprietorships. The tax rate is currently 0.375 percent of the taxpayer’s total annual revenue. Taxpayers must file their franchise tax returns by the due date and pay any taxes due by the extension deadline.
In order to apply for a franchise tax extension, taxpayers must fill out the Texas Extension Application. This form must be filed before the original due date of the franchise tax return. It’s important to note that the application must include estimated tax payments for the current year. If these payments are not included, the extension will not be granted.
If the extension is approved, the taxpayer will have an additional six months to file their franchise tax return. This means that the new due date for the tax return is January 15, 2024. It’s important to note that if the taxpayer does not file their return by this date, they may be subject to interest and penalty charges.
Taxpayers should also be aware that an extension of time to file does not grant an extension of time to pay. If the franchise tax is not paid by the original due date, the taxpayer may be subject to interest and penalty charges. Interest is calculated at a rate of 1 percent per month until the tax is paid in full.
The Comptroller of Public Accounts also offers taxpayers the option to make installment payments on their franchise tax. This can be done by submitting the Texas Installment Agreement Request form. This form must be filed before the original due date of the franchise tax return. Once the installment agreement is approved, taxpayers can make payments on the outstanding balance in monthly installments.
It’s important for taxpayers to remember that the Texas franchise tax extension deadline for the 2023 tax year is July 15, 2023. Taxpayers who are unable to meet this deadline can apply for an extension. This will give them additional time to file their tax returns and avoid any interest or penalty charges. It’s also important to note that an extension of time to file does not grant an extension of time to pay.
Conclusion
The Texas franchise tax extension deadline for the 2023 tax year is July 15, 2023. Taxpayers who are unable to meet this deadline can apply for an extension. This will give them additional time to file their tax returns and avoid any interest or penalty charges. The Comptroller of Public Accounts also offers taxpayers the option to make installment payments on their franchise tax.
Final Thoughts
The Texas franchise tax is an important obligation for all businesses registered in the state. It’s important for taxpayers to make sure that they are up-to-date on their taxes and that they meet all of their deadlines. Taxpayers who are unable to meet the Texas franchise tax extension deadline should apply for an extension in order to avoid any interest or penalty charges.